Hybrid and remote arrangements have become a permanent feature of the Hungarian labour market, but Hungarian law draws a clear legal distinction between “remote work” (telework) and simply working from home occasionally, often called “home office.” The distinction matters, since it determines what must be in the employment contract, how costs are reimbursed, and whether the arrangement can be tax-free for the employee.
What Is Remote Work (Telework)?
Under Hungarian employment practice, an arrangement is treated as remote work or telework when all of the following apply:
- The employee works in a place separate from the employer’s premises.
- The arrangement is regular, not occasional.
- The work is carried out using IT equipment.
- The results of the work are transmitted electronically.
Because telework is a distinct form of employment, the remote location must be recorded in the employment contract as the employee’s place of work. An employer cannot unilaterally order an employee into telework. It has to be agreed between the parties.
Remote work can be full-time or partial, for example a set number of days per week or month spent away from the employer’s premises, but it needs to be a regular, ongoing pattern. It is not necessary to specify whose equipment is used to perform the work, so long as the results are delivered electronically.
What Is Home Office?
If an employee works from home only occasionally, or the work is not carried out primarily through IT equipment, this is generally referred to as “home office” rather than telework. Home office is usually offered as an option and may be described in the employment contract, but it does not carry the same legal status as formal telework.
Under the Labour Code, an employer can also temporarily assign an employee to work away from their usual place of work, including a home office arrangement, without the employee’s consent, but this is capped at 44 working days or 352 scheduled hours in a calendar year. Any arrangement beyond that limit needs to be agreed with the employee directly.
Costs and Tax-Free Reimbursement
Regardless of which arrangement is used, the general rule under Hungarian labour law still applies: the employer must provide proper working conditions and reimburse the employee’s legitimate costs. In principle, this can be done based on actual invoices, though in practice it is often difficult to isolate the additional cost of utilities like electricity or heating caused specifically by remote work.
For this reason, Hungarian tax rules allow a simpler option: employers can pay a flat-rate, tax-free cost reimbursement to employees working remotely, up to 10% of the monthly minimum wage. In 2026, the statutory minimum wage is HUF 322,800 per month, which puts the maximum tax-free reimbursement at HUF 32,280 per month. This is a monthly ceiling, not a fixed monthly entitlement: the actual amount that can be paid tax-free is proportional to the number of days the employee genuinely worked remotely that month, taking into account days off and any days spent at the employer’s premises.
Equipment and Other Costs
Assets needed for remote work, such as a desk, chair, or other equipment, can either be purchased directly by the employer or bought by the employee and reimbursed against a proper invoice. Since the employee is working from home rather than commuting, ordinary commuting costs do not apply in the usual sense. If the employee does need to travel to the employer’s premises or elsewhere for work purposes, this is generally treated as a business trip rather than as commuting.
Why a Remote Work Policy Is Worth Having
Given the distinctions between telework and home office, and the specific rules around cost reimbursement and the 44-day limit for employer-ordered arrangements, it is worth having a tailored remote work policy that sets out clearly which arrangement applies, how costs will be reimbursed, and what equipment the company will provide. A clear policy reduces uncertainty for both employer and employee and makes day-to-day administration considerably easier.
How Leinonen Can Help
Setting up compliant remote work or home office arrangements in Hungary involves getting the employment contract wording, cost reimbursement calculations, and payroll treatment right from the outset. Leinonen payroll and legal team in Hungary can help you draft a remote work policy suited to your business, and make sure ongoing reimbursements and contracts stay aligned with current Hungarian labour and tax rules.
If you have questions about setting up remote work or home office arrangements for your Hungarian employees, feel free to contact us for a consultation.
