💶 Am I owed severance pay in Hungary?

It depends

Quick answer

If the employer lets you go — yes; if you leave — no, with one important exception. Severance is owed when the employer terminates (or the company dissolves without successor) and you hold at least 3 years' continuous tenure. The ladder, in absence pay: 1 month after 3 years, 2 after 5, 3 after 10, 4 after 15, 5 after 20, 6 after 25 — raised by a further 1–3 months within 5 years of retirement age. Not owed: on your own (ordinary) resignation, on the employer's immediate termination (when you breached seriously), or when the dismissal rests on your conduct or non-health-related capability. The big exception: when you lawfully terminate with immediate effect (over the employer's serious breach, like unpaid wages), you're settled as if they had dismissed you — severance included. In mutual agreements it's bargaining: you can ask for a 'severance-equivalent' sum, but it isn't automatic.

📋 The key rules

Owed: on employer termination and successor-less dissolution, from 3 years' tenure
Scale: 1 / 2 / 3 / 4 / 5 / 6 months' absence pay (after 3/5/10/15/20/25 years)
Within 5 years of retirement age: +1–3 months raised severance
Not owed: on your ordinary resignation; on conduct-based dismissal
Owed though on your lawful immediate termination

🔓 Exceptions

Mutual agreement: no statutory severance — but any sum can be written into the deal
Collective agreements or contracts may grant more favourable rates

⚠️ Penalties

Unpaid severance is a wage claim: recoverable with interest within the 3-year limitation, via labour courts. Unlawful dismissal (false reasons) adds compensation on top of severance.

📎 Official sources

Verified: 2026-06-20

❓ Frequently asked questions

I resign — do I get severance?

Not on ordinary resignation — unless you lawfully terminate with immediate effect over the employer's serious breach: then severance follows too.

What's owed after 12 years?

Per the 10-year step, 3 months' absence pay — the next step (4 months) comes at 15 years; in the protected pre-retirement window it's raised by 1–3 months.

Do I lose it in a mutual agreement?

Statutory severance isn't automatic there — but the sum is negotiable: when the employer initiates, asking at least the statutory scale is realistic.

What counts towards the 3 years?

Continuous tenure with that employer (including predecessor time in transfers); certain unpaid absences beyond 30 days don't count.

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