Minimum Wage in Hungary – Frequently asked Questions

Is there a separate legislation relating to minimum wages in Hungary?

The 153. paragraph (1) of amended 1st Law of 2012 on Labour Code. Until 2011 in the framework of tripartite Interest Reconciliation Council the national level social partners agreed on the volume of next year minimum wage increase. After it the amount of the minimum wage has been legally fixed. In July 2011 the National Interest Reconciliation Council was ended, and the new body - the National Economic and Social Council - has only right to proposal. The resolution of government number 347/2014. (XII. 29.) fixed the minimum wage valid in 2015.

Do one or more minimum wages exist that is/are determined by law?

There are two types of minimum wage in Hungary - National Level Minimum Wage and Guaranteed Minimum Wage. Both minimum wages are national level minimum wages, only the so called 'guaranteed minimum wage' should be earned by workers who are at least professional workers and has a job which is professional. For example if a professional worker performs a work which is an auxiliary work, than he is entitled to receive only the 'minimum wage' which is lower than the 'guaranteed wage minimum'.

At what level is minimum wage determined?

There are 2 types of minimum wages: 1) National Minimum Wage is for employees without any profession, that is, it is paid to unskilled workers or employees who are skilled but work in a position which does not require their certificate or skill and 2) Guaranteed wage minimum is set for professional workers. It is established in accordance with the level of education/vocational training required for a particular job or position.

On what basis is minimum wage calculated?

The Government's resolution fixes minimum wages for hourly, daily, weekly and monthly basis.

In case of weekly/monthly minimum age, are they based on any fixed number of hours?

In Hungary the official working time is 8 hours/5 days.

Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?

Parties that are setting involved in fixing minimum wages are: Governmental body - Ministry of National Economy, State Department responsible for Employment; Employer organisations - ÁFEOSZ-Coop, MGYOSZ, VOSZ and Trade unions/trade union confederations - Liga, MSZOSZ, Workers Councils.

How are upratings (adjustments) of minimum wage/s decided upon?

As concerns the minimum wage and the guaranteed wage minimum setting for 2014 first the 3 employers' and 3 employees' organisations have reached a consensus, and after it the government side has it accepted.

How often is fixed component of minimum wage updated?

The fixed component of minimum wage is updated each year by the end of the year in concern of next year.

What is/are the yardstick/s on which minimum wage upratings are based?

Level of wages and incomes in the country- The expected level of pay increases shall be taken into account when fixing the minimum wage rates[Labour Code S.153(5)]. The Government is authorized to decree – following consultations with social partners–the expected level of pay increases deemed necessary to preserve the net value of wages below 300,000 forints gross, and the level of non-wage benefits that can be taken into consideration within that framework, and the detailed rules relating to the expected level of pay increases. Economic development- The amount and scope of the mandatory minimum wage shall, in particular, be determined based on the requirements prescribed for the status of the national economy [Labour Code S.153(3)] . Level of employment. The amount and scope of the mandatory minimum wage shall, in particular, be determined based on the requirements prescribed for the indicators of the national labour market and the unique requirements of certain economic sectors and geographical areas in terms of workforce.[Labour Code S.153(3)]. [Labour Code S.153(3] Other provisions - The amount and scope of the mandatory minimum wage shall, in particular, be determined based on the requirements prescribed for specific occupations. (153(3)]).

What is National Poverty line?

Click here to know the national poverty line in context with Minimum Wage, living wages and actual wages. Select the currency (Euro or national currency) to know national poverty line.

How is minimum wages compliance regulated?

If there is any complain to the compliance of the implementation of minimum wage, the complainant can turn to the National Labour Inspectorate based on Law LXXV of 1996 on the labour inspection.

Which legal sanctions can be applied in compliance is lacking?

The labour Inspector during the labour inspection of a company controls whether the employer meets the requirements in concern of minimum wage and the guaranteed wage minimum. According to the plan of labour Inspectorate October and November of 2014 will be the months to review the wages in the companies. In case of no fulfilment of regulation in concern of minimum wage and obligatory wage minimum the labour inspector imposes fines to the company.

Are sanctions often being applied?

These kinds of sanctions are imposed rarely due to the small number of labour inspectors. For example during he summer inspectorate in 2013 the working condition of 3500 employees in 798 companies were revised. The inspectors found any irregularity in concern of working conditions of 66% of workers.

To whom/Where can individuals complain, if they think they are earning less than minimum wage?

The individuals/trade union members can visit the legal service run by trade unions. Coordinates: www.jogpont.hu; http://www.jogpontplusz.hu/. The individual can present his/her complain to the Labour Court. Coordinates: 1027 Budapest, Királyfürdő utca 4.; tel.+36-1/393-5400.

Which month of the year is minimum wage rate revised in Hungary?

Minimum Wage is revised January of every year.