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Pay Equity Laws in Hungary
Employment Law Overview Hungary
Hungary

Pay Equity Laws in Hungary

Extent of Protection

The Labour Code states that the principle of equal treatment must be upheld regarding remuneration. Wages include all monetary and in-kind benefits provided directly or indirectly by the employer to the employee based on legislation, collective agreements, employment contracts, or the employer’s unilateral commitment. When determining the equal value of work, particular consideration must be given to the nature, quality, and quantity of the work performed, the working conditions, the required qualifications, the physical or mental effort, experience, responsibility, and labour market conditions.

Remedies

While proceedings can be initiated before the Equal Treatment Authority, individual remedies can only be pursued through court proceedings in labour law cases. In wage disparities caused by violations of the principle of equal treatment, compensation for wage differences can be claimed retroactively for up to three years.

Enforcement/Litigation

The number of administrative and court cases related to violations of the principle of equal pay is very low—this is more attributable to the limited ability of claimants to assert their rights than to the absence of widespread instances of the issue. Since 2013 when the new Labour Code was enacted, only four cases have reached the Supreme Court. In all of these cases, the court examined the concept of equal work; the issue of work of equal value has not yet been raised.

Other Requirements

Currently, employers have no obligations related to transparency or affirmative action. This will change once the EU Pay Transparency Directive (Directive EU 2023/970) is implemented in Hungary.

Any questions

Ask our member firm OPL in Hungary