Hungary has a mandatory social security system which funds a wide range of benefits including maternity, unemployment and disability benefits, as well as sick pay and pensions.

Foreign nationals who are employed by Hungarian companies are required to contribute to the scheme and are eligible to receive benefits on the same basis as Hungarian nationals. Both employees and employers contribute to the scheme, with current individual contributions for the basic benefits package being set at 8.5% of gross earnings, and employer contributions being 18% of the insured person's gross earnings. Higher contributions are required for additional benefits and there are daily ceilings on the level of employee contributions.

Foreign nationals working in Hungary for wholly foreign-owned companies, and the representatives and staff of diplomatic missions are not eligible for the scheme and need to make their own private insurance arrangements.