Labor Laws
Hungary
Rewarding the Work in Hungary

Rewarding the Work in Hungary

1. What must be defined as the basic salary in an employment contract?
The basic salary must be the wage specified in Section 153, calculated based on time wages.

2. Can the wage be performance-based instead of time-based?
Yes, the employer can set a performance wage, either exclusively or combined with a time wage, based on agreement in the employment contract.

3. What is the role of performance requirements in determining wages?
The performance requirements should be based on objective measurement and the working conditions within the employer’s operations.

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4. How should performance wage requirements be communicated?
The performance wage factor and requirements must be communicated to the employee in writing before they are applied.

5. Is there a guaranteed wage for performance-based compensation?
Yes, employees paid exclusively through performance wages must be guaranteed at least half of the basic wage.

6. What is the standard wage supplement for Sunday work?
Employees working on Sundays are entitled to a 50% wage supplement if the work meets the criteria defined in Section 101.

7. How is the wage supplement calculated for holiday work?
Employees are entitled to a 100% wage supplement for work performed on holidays or public holidays.

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8. What is the compensation for night work?
Employees working at night (between 10 PM and 6 AM) are entitled to a 15% wage supplement if the work exceeds one hour.

9. How is the wage supplement determined for shift work?
A 30% wage supplement is provided for shift work if the work starts regularly between 6 PM and 6 AM.

10. What is the wage supplement for on-call or standby work?
Employees on standby are entitled to a 20% wage supplement, while those on-call are entitled to a 40% wage supplement.

11. What is the absence fee for an employee during leave?
Employees are entitled to an absence fee during the leave, sick leave, or other instances where they are not working, as per the conditions specified in the law.

12. How is the absence fee calculated when an employee is on sick leave?
Employees are entitled to 70% of the absence fee for the duration of their sick leave.

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13. Are employees entitled to absence pay for paternity leave?
Yes, employees are entitled to full absence pay for the first five working days of paternity leave, with a reduced rate after.

14. What happens when an employee is on parental leave?
Employees on parental leave are entitled to 10% of the absence fee, with the amount adjusted based on child care benefits.

15. What should an employer do when an employee’s absence affects their wages?
If the employee is absent due to illness, parental leave, or similar reasons, the employer must compensate the employee according to the wage calculations outlined in Section 149.

16. How is the wage to be paid to the employee?
Wages must be paid via bank transfer to the account provided by the employee, unless a different method is agreed upon.

17. When should the employer settle the wages for an employee?
The employer must settle the wages for the previous month by the 10th day of the following month.

18. Can the employer deduct wages for certain purposes?
Wages can be deducted only based on legislation or enforceable decisions, and deductions for the employer’s benefit are prohibited.

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19. How is the wage payment schedule impacted by holidays or weekends?
If the wage payment day falls on a holiday or weekend, the employer must pay the wages on the preceding working day.

20. What happens if there is an error in the wage payment?
If an error occurs in the wage payment, the employer must inform the employee and correct the payment during the next settlement period.

21. Who determines the mandatory minimum wage?
The government, after consultation with the National Economic and Social Council, determines the mandatory and guaranteed minimum wages.

22. How often should the mandatory minimum wage be reviewed?
The government is required to review the mandatory minimum wage every year.

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23. Can different employee groups receive different minimum wages?
Yes, the government may set different mandatory and guaranteed minimum wages for different employee groups based on job requirements and labor market conditions.

24. What should the employer do if there’s a difference in the wage payment after termination?
If the employer pays a higher wage than the calculated amount, the difference must be paid to the employee in the next wage settlement.

25. How does the employer handle wage payments in case of termination?
If an employee’s employment is terminated before the wage is due, the employer must send the salary to the employee's residence address, with the cost covered by the employer.

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