Hungary
An ILO EPLex composite of 0.447 places Hungary among moderate-protection jurisdictions on the 0-1 scale.
Hungary's statutory protection against unfair dismissal is moderate - an ILO EPLex composite of 0.447 on the 0–1 scale, stronger than 57% of the 95 rated countries.
EPLex 0.447 · #42/95 · OECD 1.89/6 · B-READY 73.5. ILO EPLex · World Bank B-READY 2025 · OECD EPL.
Employment Protection Composite
One composite verdict from 3 of 3 independent sources, each percentile-benchmarked against every rated country. A missing source never lowers the score -- its weight redistributes to the sources this country actually has.
Benchmarked against p10-p90 of every country rated by that source. See our methodology for the exact benchmark table and weights.
Where Hungary sits on ILO EPLex protection
Every rated country's dismissal-protection composite, 95 countries
0.45 Top 43% higher than 57% of 95 rated countries
Each bar is a band; taller bars hold more rated countries. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.
Source ILO EPLex · 2019
Legal strictness doesn't predict dismissal speed
Across the 58 countries with both an ILO EPLex composite and a World Bank B-READY weeks-to-dismiss figure, the two barely move together (Pearson r ≈ -0.24). Some of the strictest-on-paper countries -- Czech Republic and Slovenia among them -- report close to 0 weeks to dismiss in practice, while more flexible-on-paper countries like the United States and Canada report among the longest practical timelines. Hungary sits at 0.447 EPLex (57th percentile) and 8.0 weeks to dismiss in practice.
EPLex composite vs. weeks to dismiss in practice
Each point is one of the 58 countries with both scores (30 shown, an even cross-section by weeks-to-dismiss). Hungary is the highlighted point.
What the Data Shows for Hungary
Europe. Covered by 3/3 tracked datasets. As an OECD member, it is included in the OECD's long-running historical EPL series. EU membership means its labor rules are also shaped by directives on collective redundancies, transfers of undertakings, and fixed-term work. The most recent ILO EPLex composite score is 0.447 out of 1.0 (2019), summarizing statutory termination rules into a single index. B-READY 2025 labor score: 73.5/100, comparatively strong. The OECD EPL overall strictness index is 1.89/6.0, where higher values indicate stricter rules on individual and collective dismissal.
Statutory notice periods in Hungary scale with tenure across 7 tiers, reaching 3 months at 20 years of service. Severance pay can reach 5 months of salary at 20 years, while redundancy-specific pay is 5 months. The maximum probation period allowed by law is 3 months, defining how long employers can assess workers under reduced protection. Dismissal process: slow, ~8.0 weeks. No 3rd-party approval required for individual dismissal.
Formal labor dispute resolution is notably slow, averaging 7.5 months from filing to outcome. A moderate share of firms, 6.9% in the World Bank's survey, report experiencing a labor dispute. Employer social contributions run to a moderate 6.0% of salary on top of wages. The EPLex redress/reinstatement sub-indicator is 0.500/1.0, reflecting how strong remedies are when a dismissal is ruled unlawful. Historically, Hungary's OECD EPL score moved from 2.00 in 1990 to 1.89 in 2019, showing the direction of reform over time. 6 peer comparisons below.
Termination Protection Breakdown (2019)
Scale: 0 = no protection · 1 = maximum protection. Source: ILO EPLex 2019.
Notice Periods by Tenure
| Tenure | Notice Period |
|---|---|
| 6 months | 1 month |
| 9 months | 1 month |
| 2 years | 1 month |
| 4 years | 1.166667 months |
| 5 years | 1.5 months |
| 10 years | 1.833333 months |
| 20 years | 3 months |
Source: ILO EPLex Notice period is the legally mandated advance notice before termination
Severance and Redundancy Pay by Tenure
| Tenure | Severance | Redundancy |
|---|---|---|
| 6 months | 0 mo | 0 mo |
| 9 months | 0 mo | 0 mo |
| 2 years | 0 mo | 0 mo |
| 4 years | 1 mo | 1 mo |
| 5 years | 2 mo | 2 mo |
| 10 years | 3 mo | 3 mo |
| 20 years | 5 mo | 5 mo |
Values in salary-months. Source: ILO EPLex. Severance = individual dismissal. Redundancy = collective/economic dismissal.
Labor Regulation Quality
Source: World Bank Business Ready 2025 Pillar scores are 0-100 (higher = better regulation quality)
Historical Protection Score
| Year | Overall Score | Visual |
|---|---|---|
| 1990 | 2.00 | |
| 1991 | 2.00 | |
| 1992 | 2.00 | |
| 1993 | 2.00 | |
| 1994 | 2.00 | |
| 1995 | 2.00 | |
| 1996 | 2.00 | |
| 1997 | 2.00 | |
| 1998 | 2.00 | |
| 1999 | 2.00 | |
| 2000 | 2.00 | |
| 2001 | 2.00 | |
| 2002 | 2.00 | |
| 2003 | 2.00 | |
| 2004 | 2.00 | |
| 2005 | 2.00 | |
| 2006 | 2.00 | |
| 2007 | 2.00 | |
| 2008 | 2.00 | |
| 2009 | 2.00 | |
| 2010 | 2.00 | |
| 2011 | 2.00 | |
| 2012 | 2.00 | |
| 2013 | 1.77 | |
| 2014 | 1.77 | |
| 2015 | 1.77 | |
| 2016 | 1.77 | |
| 2017 | 1.77 | |
| 2018 | 1.89 | |
| 2019 | 1.89 | |
Scale: 0-6 (higher = more protective). Source: OECD Employment Protection Legislation database.
Compare Hungary With...
Countries with similar labor-regulation profiles
Two peer sets for Hungary on metrics that vary across the full country corpus, not regional containment. The nearest EPLex block below stays on the ILO composite; these neighborhoods use B-READY, OECD, or statutory-duration axes.
Similar B-READY labor score
Nearest countries by World Bank B-READY labor regulation (73.5/100 here).
Similar OECD EPL strictness
Nearest countries by OECD employment-protection index (1.89/6 here).
Nearest EPLex peers
Closest ILO EPLex composite scores to Hungary (0.447), not the global top of the list.
Read with this Hungary page
Read with this Hungary roster
Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from OECD, ILO, and World Bank labor market databases. Consult a qualified professional before making decisions based on this data.
Read our methodology - how this data is sourced, computed, and verified.
Primary sources: ILO EPLex, World Bank B-READY, OECD EPL.
PlainEmploy is rendered directly from the OECD Employment Protection Legislation indicators, the ILO EPLex database, and the World Bank B-READY labor pillar, no number is typed in by an editor. This country's composite scores and comparisons are computed directly from the underlying OECD/EPLex/B-READY tables, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2026-08-30.