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Hungary - Minimum Wages - 2009


LAST UPDATE

9 December 2009

SOURCES


Name of Act

Labour Code Act No. 22 of 1992 Magyar Kozlony, 4 May 1992, as amended to June 2009 [no official English version available yet]

Name of Act

Act No. 75 of 1996 on Labour Inspection (1996. évi LXXV. törvény a munkaügyi ellenőrzésről), Magyar Közlöny, No. 89, /10/1996, pp. 5265-5267, as amended up to 2009 by Act No. 38 amending industrial relations laws and other necessary measures
[the links provide the original Hungarian version as well as its latest amendment of 2009 in Hungarian]

Name of Act

Act No. 33 of 1992 on the Legal Status of Public Servants, Magyar Közlöny, 1992-06-02, no 56, pp. 1953-1964, as amended up to Law No. 1/2007 on the entry and residence of individuals with freedom of movement and residence, Magyar Közlöny, Közlöny, Budapest, Hungary, pp. 2-35
[link provides the English version of the original act]

Name of Act

Tripartite National Agreement fixing the minimum wage for 2009, dated 12 December 2008.
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Name of Act

Tripartite National Agreement fixing the minimum wage for a three-year period (2006-2008), dated 28 November 2005.

MINIMUM WAGE FIXING


Procedure


Government decides after tripartite or bipartite body discussions/recommendations

A mandatory minimum wage rate is determined by the government. The Interest Conciliation Council, made up of government, employers` and employees` representatives, is consulted during the wage setting process, and minimum wage rates set by the government are subject to the agreement of the Council.
The Minister of Economic Affairs shall promulgate the agreements concluded in the National Council for the Reconciliation of Interests in a legal regulation.
Labour Code §16, 17 (1)(b)

Minimum wage set through decentralized collective bargaining

Minimum wage rates can also be fixed through collective agreement. In this case the amount of minimum wage must not be lower than the wage which is agreed upon with the National Council for the Reconciliation of Interests.

The minister in charge of employment and labor may extend the scope of the collective agreement to the entire sector, if so requested by the parties, and following a request of opinion of the national employees` and employers`organisations affected by such extension, provided the organisations which are parties to the agreement qualify as representative for the sector in question.
Labour Code §13(3), 34, 144(6)

Criteria


Needs of workers and their families

Yes - employees´ needs.
Labour Code §144 (4)

Cost of living

Yes
Labour Code §144(4)

Level of wages and incomes in the country

Yes - national trends in wages.
Labour Code §144(4)

Social security benefits

Yes
Labour Code §144(4)

Economic development

Yes - Economic circumstances, including economic development requirements.
Labour Code §144(4)

Productivity

Yes
Labour Code §144(4)

Level of employment

Yes - the desirability of maintaining the level of employment.
Labour Code §144(4)

Other provisions

The relative living standard of different social groups.
Labour Code §144(4)

Coverage


Scope

Minimum wage regulations apply to all employees and employers, including public service officials who are otherwise exempt from the provisions of the Labour Code.

The Labour Code applies to all employment relationships under which work is performed in the territory of the Republic of Hungary, and to employees of Hungarian employers working abroad on assignments. The scope of the Act does not apply to employment relations between foreign employers and their employees who are carrying out their work on Hungarian territory.
Labour Code §1, 2, 144
Act No. 33 of 1992 on the Legal Status of Public Servants §42, 43
Tripartite National Agreement fixing the minimum wage for 2009

Specific minimum wage rates


» Specific minimum wage by occupation

No.

» Specific minimum wage by sector

No.

» Specific minimum wage by region

No.

» Minimum wage levels for specific categories of workers

In respect of the remuneration of employees for the same work or for work to which equal value is attributed, the principle of equal pay must be observed. The equal value shall be determined based on the nature of work, its quality and quantity, working conditions, vocational training, physical and intellectual efforts, experience and responsibilities.
Labour Code §142/A

» Other categories

A specific minimum wage rate is set for skilled workers which applies if the job requires secondary education and/or vocational qualification.
Tripartite National Agreement fixing the minimum wage for 2009 §1(b)

Level


Minimum wage level(s) in national currency

71,500 Forint per month since 1 January 2009

(69.000 Forint per month 1 January - 31 December 2008)
Tripartite National Agreement fixing the minimum wage for 2009 §1
Tripartite National Agreement fixing the minimum wage for a three-year period (2006-2008) §1
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Last minimum wage update

1 January 2009
Tripartite National Agreement fixing the minimum wage for 2009

In-kind allowances

Part of an employees’ wages may be paid in kind. The amount of wages paid in kind may not exceed 20% of the total wages due to the employee.
Labour Code §154(2)
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Rate of payment


» Monthly

The minimum wage is fixed per month on the basis of 174 hours of work.
Tripartite National Agreement fixing the minimum wage for 2009 §1
Labour Code §144/A

Scheduled frequency of adjustment

Minimum wage rates must be reviewed regularly. The legislation does not set forth exactly how frequently rates should be adjusted.
Labour Code §144(7)

Enforcement mechanisms


Labour inspection

An employee, trade union or works council may initiate proceeding as a result of an act or omission that contravenes the Labour Code, such as failure to pay relevant minimum wage rates.

Additionally, the Act No. 75 of 1996 on Labour Inspection provides that the scope of labour inspection extends to compliance with the legal provisions on wage, including minimum wage.
Labour Code §144(1), 199(1)
Act No. 75 of 1996 on Labour Inspection §3(g)

Fines in national currency for non-respect of legislation

The Labour Code does not set forth the penalties to be applied if minimum wage rates are not paid.
According to the Act No. 75 of 1996 on Labour Inspection, the labour inspector may impose a fine between 30.000 and 5.000.000 HUF with regard to a breach of legal provisions on wages concerning one employee, a fine between 30.000 and 8.000.000 HUF with regard to a breach of law concerning more than one employee. If less than three years have passed from the last fine, a fine of at most 20.000 000 HUF shall be imposed.
Act No. 75 of 1996 on Labour Inspection §3(g), 7(2)(c), 7(4)
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Results generated on: 29th July 2014 at 08:41:52.
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