Minimum Working Conditions
The Hungarian Labour Code contains three types of rules: binding rules from which neither an employment contract nor a collective agreement may derogate, such as rules on the grounds for termination, liability for damages, or the maximum limit of working time. Most labour law rules are relative discretionary rules, i.e. they can only deviate from the legal minimum in favour of the employee, for example the amount of leave, the amount of severance pay, or the length of notice. The third type of rule is the set of bilaterally dispositive rules, which can be deviated from to the benefit or detriment of the employer. In some cases, the law sets a maximum level of compensation that is more disadvantageous to the employee, such as the amount of compensation payable to the employer.
The employee learns about the terms and conditions of his employment from the contract of employment, but as there are only two mandatory elements, the employer’s information notice has a key role to play. In addition to providing a copy of the employment contract, the employer must inform the employee in writing no later than 7 days from the start of the employment relationship of:
- the person exercising the employer’s rights;
- the beginning and duration of the employment relationship;
- the workplace;
- the tasks included in the scope of the position;
- the hours of work, the days on which these hours might be allocated, possible start and end times for working time according to the schedule, possible overtime hours, and the specific nature of the employer’s activity (e.g., working in multiple shifts, continuous shifts);
- method of calculating salaries, the frequency of pay, and the date of payment;
- allowances, salary supplements, and other benefits beyond the basic salary;
- the amount of holiday which can be taken, how this is calculated, and the rules for granting holiday leave;
- rules relating to the termination of employment, particularly the regulations to determine notice periods;
- the employer’s training policies and the duration of the pieces of training available to the employee;
- the name of the authority to which the employer pays public taxes and contributions relating to the employment relationship; and
- whether a collective agreement covers the employment.
Salary
Employees are typically paid on a time basis, but the parties can agree to link wages to the employee’s performance. The base salary for time-based pay must be at least the statutory minimum wage. As of 2025, the minimum wage is gross HUF 290,800 per month, or gross HUF 348,800 per month for jobs requiring at least a high school degree. These amounts are determined and increased annually by the government.
As a general rule, salaries must be calculated and paid in HUF unless the work is performed abroad. For executive employees, the parties may agree to deviate from this rule. Salaries must be paid monthly, no later than the 10th day of the following month for the previous month’s work.
Allowances must be paid when the work performance requires above-average effort. The Labour Code mandates the following compulsory allowances:
- Sunday allowance: 50% wage supplement.
- Public holiday allowance: 100% wage supplement.
- Shift work allowance: 30% wage supplement (for work performed between 6 pm and 6 am when the scheduled start time of daily work changes frequently).
- Night work allowance: 15% wage supplement (applies to employees not eligible for shift work allowance).
These allowances may be included in the base salary as a lump sum. The employment agreement must specify which allowances are included in the salary. Any allowances not included in the wage will also be payable. Overtime allowances cannot be included in the base salary and are paid as follows:
- Overtime allowance: 50% wage supplement or paid leave
- Overtime on a weekly rest day or public holiday: 100% wage supplement, or 50% plus a rest day
- Stand-by duty allowance: 40% wage supplement
- On-call duty allowance: 20% wage supplement
The parties may agree on a fixed monthly payment for stand-by and on-call duties, including regular wages and wage supplements.
In both cases, whether allowances are included in the base salary or provided as a lump sum in addition to the salary, the monthly payment must correspond to the amount the employee would be entitled to under the general rules if these options were not applied.
Bonus and commission schemes are typical in Hungary, depending on the nature of the job. These can be specified in the employer’s policies or directly in the employment agreement.
Maximum Working Week
The general statutory maximum for weekly working hours in Hungary is 40 hours per week. Regular working hours are Monday to Friday, 8 hours per day. In specific cases, employers can schedule longer working hours and arrange shifts for up to 7 days a week by applying a reference period, allowing for a maximum of 12 hours per day and 48 hours per week. By mutual agreement, daily working hours in full-time jobs may be extended to no more than 12 hours for employees in stand-by roles or for employees who are relatives of the employer or owner.
Employers can also implement flexible working hours. In such cases, there is no overtime, and working time does not need to be recorded. This arrangement is only applicable to employees who can largely manage their own schedules, such as executive employees, senior managers, sales personnel, and similar roles.
Overtime
The annual overtime limit in Hungary is 250 hours, which may be extended to 300 hours through a collective agreement. An additional 150 hours of overtime is allowed if individually agreed upon with the employee. However, the total maximum overtime cannot exceed 400 hours per year. Certain categories of protected employees, such as minors, are exempt from performing overtime.
Employer’s Obligation to Provide a Healthy and Safe Workplace
Hungary’s occupational health and safety framework emphasises the right of employees to work in conditions that protect their health, safety, and dignity. This principle is established in the Hungarian Constitution (The Fundamental Law of Hungary, Act 25 April 2011) and enforced through a comprehensive occupational safety and health care system. The Occupational Safety and Health Act sets out the responsibilities of employers to ensure safe working conditions. The act integrates occupational safety and health care, with the latter defined under the Act on Healthcare (Act CLIV of 1997) and the Act on Primary Healthcare (Act CXXIII of 2015). These laws outline objectives and tasks related to occupational hygiene and occupational medicine, requiring employers to provide appropriate preventive measures and professional healthcare services.
Employers have an objective responsibility to implement safety measures and ensure that working conditions do not endanger health. This includes the obligation to conduct risk assessments, eliminate hazards at their source, and prioritise collective technical protections over personal protective equipment. Employers must also develop a comprehensive prevention strategy, maintain proper documentation, and provide occupational health education for employees. The costs associated with meeting these requirements cannot be passed on to employees, and financial compensation cannot replace the obligation to ensure safe working conditions.
The law applies universally to all organised working activities in Hungary, regardless of the nature of the institution or its ownership. It covers the installation of workplaces, safety requirements for commissioning equipment, and resource prerequisites for safe work activities. Employers are required to engage qualified professionals or services to fulfil their obligations and to ensure the implementation of safe work practices and technologies.
The accident insurance system is not separate under the current regulations, although its introduction is a recurring topic in national strategies. Employers pay a social contribution tax for their employees, which partially funds healthcare costs, including those related to workplace accidents. The contribution rate is uniform for all employers and employees, regardless of the risk level associated with the job. As a result, employers have no direct financial incentive to reduce workplace hazards since the tax rate does not vary based on the dangerousness of the work environment.
Complaint Procedures
Employers have strict obligations regarding workplace accidents, occupational diseases, and cases of increased exposure. Any workplace accident resulting in more than three days of incapacity for work must be reported, investigated, and recorded. Similarly, occupational diseases and exposure cases must be addressed following the same procedures. Even for accidents that do not cause incapacity, employers must investigate and document the circumstances.
Employers must notify occupational health service providers at the start of an investigation. In the case of serious accidents, the occupational health service physician is required to participate in the investigation, and the employer must immediately inform the occupational safety authority.
Employees who are dissatisfied with the employer’s handling of accident reporting or investigation or who dispute the employer’s assessment of injury severity can file a complaint with the occupational safety authority. The authority will then initiate an official investigation. It can also independently conduct inspections without an accident occurring.
Employers who fail to comply with health and safety requirements and endanger employees’ health, safety, or lives are subject to occupational safety fines. The amount of these fines is determined based on factors such as the number of violations, potential consequences, the number of affected employees, the employer’s net revenue, and the severity of the violation. Payment of fines in instalments may be permitted upon request, and decisions of the occupational safety authority are subject to judicial review.
Protection from Retaliation
A health and safety representative elected under the Occupational Safety and Health Act qualifies as an employee representative. Having such an employee representative at every employer with a staff over 20 is obligatory. The labour law protections afforded to elected trade union officials also apply to health and safety representatives. In such cases, before delivering a notice of employer-initiated termination, the employer must obtain prior approval from the occupational health and safety committee. If no such committee exists, the decision must be made by the election committee members responsible for electing the health and safety representative.
Employees must not face any disadvantage or retaliation for initiating proceedings against their employer with the occupational safety authority.
