Life satisfaction
Data source: 2016 EQLS survey
Ability to choose or change
methods of work
Data source: 2015 EWCS survey
Possibility to accumulate overtime
for days off
Data source: 2013 ECS survey
Living and working in Hungary
08 Márta 2023
- Population: 9.6 million (2022)
- Real GDP growth: 4.6% (2022)
- Unemployment rate: 4.1% (2021)
Data source: Eurostat
Eurofound provides research, data and analysis on a wide range of social and work-related topics. This information is largely comparative, but also offers country-specific information for each of the EU Member States, which included the UK prior to its withdrawal from the European Union on 31 January 2020. Most information is available in English but some has been translated to facilitate access at national level.
Eurofound strives to strengthen the ongoing link between its own work and national policy debates and priorities related to quality of life and work. Increasingly important in this context are the EU’s policy priorities for a European Green Deal, a digital future, an economy that works for people, promoting and strengthening European democracy. To help repair the economic and social damage caused by the COVID-19 pandemic, the European Commission, the European Parliament and EU leaders have also agreed on a recovery plan that will lead the way out of the crisis and lay the foundations for a modern and more sustainable Europe. The EU’s long-term budget, coupled with NextGenerationEU, the temporary instrument designed to boost the recovery, will be the largest stimulus package ever financed through the EU budget to help rebuild a post-COVID-19 Europe.
The European Semester provides a framework for the coordination of economic policies across the EU. It allows Member States to discuss their economic and budget plans and monitor progress at specific times throughout the year. For 2022, the European Semester resumes it broad economic and employment policy coordination, while further adapting in line with the implementation requirements of the Recovery and Resilience Facility. As part of this, Member States are encouraged to submit national reform programmes and stability/convergence programmes that will set out their economic and fiscal policy plans, as in previous Semester cycles. The main change in the 2022 cycle will be that the national reform programme will play a dual role. Besides its role for the European Semester, it will also fulfil one of the two bi-annual reporting requirements of Member States under the Recovery and Resilience Facility.
- European Commission: The European Semester
- European Commission: European Semester documents for Hungary
- European Commission: Recovery and Resilience Facility
2015 Eurofound EWCS survey results in Hungary: 81% of people think their safety is not at risk because of their work
Living and working in Hungary and COVID-19
COVID-19 continues to have a profound impact on people’s lives across the globe, with major implications for quality of life and work. Eurofound has taken a multipronged response to the pandemic, adapting its research focus in a variety of ways. A new database of national-level policy responses, EU PolicyWatch, collates information on measures taken by government and social partners, as well as company practices, aiming to cushion the effects of the crisis. Eurofound's unique e-survey, Living, working and COVID-19, provides an insight into the impact of the pandemic on people’s lives across the EU, with the aim of helping policymakers to bring about an equal recovery from the crisis. Five rounds of the survey have been carried out to date: in April 2020 when most Member States were in lockdown, in July 2020 when society and economies were slowly reopening, in March 2021 as countries dealt again with various levels of lockdown and vaccine rollout, a panel survey in October/November 2021 to track developments since the start of the pandemic, and in March–May 2022, charting the latest developments and looking at how life has changed over the past two years. The survey investigates the impact on quality of life and society, democracy and trust, working and teleworking, the financial situation and security of people, the quality of public services, support measures and vaccinations during COVID-19. Findings for each country and a range of data pages are available.
Explore our data pages by country to find out more on the situation in Hungary.
- Database: EU PolicyWatch – Hungary
- Data: Quality of life during COVID-19 – Hungary
- Data: Democracy and trust during COVID-19 - Hungary
- Data: Working during COVID-19 – Hungary
- Data: Financial situation and security during COVID-19 – Hungary
- Data: Quality of public services during COVID-19 – Hungary
- Data: Support measures during COVID-19 - Hungary
- Data: Vaccinations during COVID-19 - Hungary
- EMCC: Restructuring support instruments database
The country page gives access to Eurofound's most recent survey data and news, directly related to Hungary:
- Living in Hungary - country-level data from the European Quality of Life Survey (EQLS)
- Working life in Hungary - key characteristic of working life across a range of parameters.
Research carried out prior to the UK’s withdrawal from the European Union on 31 January 2020, and published subsequently, may include data relating to the 28 EU Member States. Following this date, research only takes into account the 27 EU Member States (EU28 minus the UK), unless specified otherwise.
Survey results
Recent developments
Eurofound contacts in Hungary
Correspondents in Hungary
Correspondents report on topics related to developments in the country's working life and inform Eurofound’s pan-European comparative analysis. Read more
Consortium Kopint-Tárki Institute for Economic Research Ltd, and Kopint Foundation for Economic Research
Eurofound Management Board members from Hungary
Eurofound's Management Board is made up of representatives of the social partners and national governments of all Member States, European Commission representatives and an independent expert appointed by the European Parliament. Read more
Krisztina Pelei Ministry for Innovation and Technology
Adrienn Bàlint Confederation of Hungarian Employers and Industrialists (MGYOSZ)
Gyula Pallagi Hungarian Trade Union Confederation MSZSZ
Living in Hungary
Quality of life
Quality of life
Findings from the EQLS show that life satisfaction among respondents in Hungary has increased, from 5.8 in 2011 to 6.5 in 2016 (on a scale of 1–10). In addition, the WHO-5 Mental Well-being Index has improved in Hungary in recent years, from 63 in 2007 to 69 in 2016 (on a scale of 1–100). This rate is also above the EU28 average of 64 and close to the top-ranking country Ireland at 70.
Even though a relatively high share of people report difficulties in making ends meet in Hungary (61% in 2016, compared to the EU28 average of 39%), the indicator has improved around 15 percentage points since 2011 (76%). In 2016, 23% of the respondents in Hungary agreed with the statement ‘I feel I am free to decide how to live my life’, which has also improved from 20% in 2011, and getting closer to the EU28 average of 26%.
| 2003 | 2007 | 2011 | 2016 | ||
| Life satisfaction | Mean (1-10) | 5.9 | 5.6 | 5.8 | 6.5 |
| Taking all things together on a scale of 1 to 10, how happy would you say you are? | Mean (1-10) | 7.1 | 7.0 | 6.9 | 7.0 |
| Optimism about own future | Agree & strongly agree | - | - | - | 59% |
| Optimism about children’s or grandchildren’s future | Agree & strongly agree | - | - | - | 58% |
| Take part in sports or physical exercise | At least once a week | - | - | 23% | 20% |
| In general, how is your health? | Very good | - | 19% | 20% | 19% |
| WHO-5 mental wellbeing index | Mean (1-100) | - | 63 | 61 | 69 |
| Making ends meet | With some difficulty, difficulty, and great difficulty | 67% | 75% | 76% | 61% |
| I feel I am free to decide how to live my life | Strongly agree | - | - | 20% | 23% |
| I find it difficult to deal with important problems that come up in my life | Agree & strongly agree | - | - | - | 27% |
| When things go wrong in my life, it generally takes me a long time to get back to normal | Agree & strongly agree | - | - | - | 27% |
Work-life balance
Work-life balance
Based on the EQLS, work–life balance problems are more frequent in Hungary in comparison to the EU28 average. For instance, 62% of the respondents in Hungary in 2016 reported being too tired from work to do household jobs at least several times a month, compared with an EU28 average of 59%. Furthermore, in 2016, 49% of respondents in Hungary experienced difficulties to fulfil family responsibilities because of work at least several times a month, significantly higher than the EU28 average of 38%. The least common work–life balance problem in Hungary in 2016 was having difficulties to concentrate at work because of family responsibilities, reported by 25% of respondents, but still higher than the EU28 average of 19%.
| (At least several times a month) | |||||
| I have come home from work too tired to do some of the household jobs which need to be done | Total | 58% | 62% | 59% | 62% |
| Men | 60% | 66% | 58% | 61% | |
| Women | 56% | 58% | 59% | 64% | |
| It has been difficult for me to fulfil my family responsibilities because of the amount of time I spend on the job | Total | 38% | 40% | 39% | 49% |
| Men | 40% | 39% | 37% | 47% | |
| Women | 35% | 43% | 41% | 52% | |
| I have found it difficult to concentrate at work because of my family responsibilities | Total | 12% | 17% | 23% | 25% |
| Men | 12% | 16% | 19% | 23% | |
| Women | 12% | 18% | 27% | 27% |
Quality of society
Quality of society
Involvement in unpaid voluntary work is relatively rare in Hungary in comparison to other EU Member States. Only 4% of respondents in Hungary volunteered at least once a month in 2016, versus an EU28 average of 10%.
Tensions between poor and rich have decreased in Hungary, from 71% of respondents reporting a lot of tensions in 2011 to 59% in 2016. However, this share was highest among the EU countries. Perceived tensions between different racial and ethnic groups have also decreased, from 60% in 2011 to 50% in 2016, although still above the EU28 average of 41%.
| 2003 | 2007 | 2011 | 2016 | ||
| Social exclusion index | Mean (1-5) | - | 2.3 | 2.2 | 2.2 |
| Trust in people | Mean (1-10) | 5.0 | 4.7 | 4.3 | 4.9 |
| Involvement in unpaid voluntary work | % "at least once a month" | - | - | 5% | 4% |
| Tension between poor and rich people | % reporting 'a lot of tension' | 61% | 71% | 71% | 59% |
| Tension between different racial and ethnic groups | % reporting 'a lot of tension' | 55% | 50% | 60% | 50% |
| I feel safe when I walk alone after dark | Strongly agree | - | - | 30% |
Quality of public services
Quality of public services
Quality ratings for seven public services
Note: scale of 1-10, Source: EQLS 2016.
The perceived quality of health services has improved in recent years, getting closer to the EU28 average. The quality of health services increased from 5.3 in 2003 to 5.7 in 2016, yet remaining below the EU28 average of 6.7 in 2016 (on a scale of 1–10). Similar improvements can be seen in the quality ratings for the education system, social housing and state pension system, which have increased in recent years, also getting closer to their respective EU28 averages.
The quality of public transport increased from 5.6 in 2003 to 6.8 in 2016, surpassing the respective EU28 average of 6.6 in 2016 (on a scale of 1–10). Furthermore, the quality of childcare services has increased from 5.7 in 2007 to 7.1 in 2016 and is now above the EU average of 6.7 in 2016. The perceived quality of long-term care services in Hungary was 6.3 in 2016, which is also above the EU28 average of 6.2.
| 2003 | 2007 | 2011 | 2016 | ||
| Health services | Mean (1-10) | 5.3 | 5.1 | 5.1 | 5.7 |
| Education system | Mean (1-10) | 6.2 | 5.9 | 5.7 | 6.3 |
| Public transport | Mean (1-10) | 5.6 | 5.8 | 5.5 | 6.8 |
| Childcare services | Mean (1-10) | - | 5.7 | 5.7 | 7.1 |
| Long-term care services | Mean (1-10) | - | - | 5.2 | 6.3 |
| Social housing | Mean (1-10) | - | - | 4.4 | 5.2 |
| State pension system | Mean (1-10) | 4.9 | 4.2 | 3.8 | 4.5 |
Working life in Hungary
About
- Author: Zoltán Matheika, Szilvia Borbély, Nóra Krokovay
- Institution: Kopint-Tárki Institute for Economic Research
- Published on: Dé hAoine, Lúnasa 6, 2021
This profile describes the key characteristics of working life in Hungary. It aims to complement other EurWORK research by providing the relevant background information on the structures, institutions and relevant regulations regarding working life. This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are updated annually.
Highlights – Working life in 2021
Highlights – Working life in 2021
Author: Ágnes Hárs
Institution: Kopint-Tárki Institute for Economic Research
Highlights updated on: 19 May 2022
Working paper: Hungary: Working life in the COVID-19 pandemic 2021
In Hungary, government measures to deal with the pandemic focused on avoiding, as far as possible, lockdowns and a negative impact on the economy. The ‘state of danger’ legal order and the regulatory governance to fight against COVID-19 were introduced at the beginning of COVID-19 and remain in place until mid-June 2022 – until after the next parliamentary elections in April 2022. The government does not favour generous measures to support or preserve existing jobs. Successive measures to mitigate the effects of the pandemic have, in line with the government's vision, been geared more towards encouraging businesses and workers to work and look for work rather than offering subsidies.
As the health situation worsened in autumn 2020, the government introduced some public health measures in November 2020 – relatively late – and these were gradually eased by May 2021. The COVID-19 vaccination started in early January 2021 and with its gradual spread no further closures were implemented. Although taking the vaccines was strongly encouraged by the government, there was no fully developed plan on how to implement the vaccination programme. Testing is modest and expensive while free testing is not widespread and available only in certain cases. Nevertheless, testing can be provided (and paid for) by employers for their employees.
With the numbers of vaccinated persons showing down, the government decided to make vaccination compulsory for health and social workers from 1 August 2021 and for employees of the state from 1 November 2021. As for municipalities, the mayor could decide who should be vaccinated, and in the private sector, employers were allowed to make vaccination compulsory. However, in March 2022, with most health restrictions, compulsory vaccination also came to an end.
At the beginning of the pandemic, labour market conditions deteriorated fast. The number of part-time employees and those on unpaid leave increased in the first two waves of the pandemic. However, in the third wave in 2021, the number of part-time employees was similar to the pre-pandemic period and the number of people on unpaid leave by mid-2021 gradually returned to their pre-pandemic level. At the same time, the number of those teleworking remained high. Altogether, Hungary achieved a relatively quick economic and labour market recovery from the COVID-19 epidemic, although at the expense of the burden on health care and a high death rate in the population.
Many of the measures launched in the first year of the pandemic were extended, amended and continued into 2021, while the new measures launched were mainly a set of preferential loan schemes for businesses, which not all firms were able to take advantage of. Generous measures for individual employees also supported middle- and high-income beneficiaries, while low-income families were not among the beneficiaries of government measures (for example, tax rebates or suspension of loan repayments). The crisis management and recovery plans were not transparent and social dialogue and consultation on plans and directions were not on the agenda. Measures in the form of government decrees were issued the night before they were due to come into force, with little opportunity for advance preparation. Other channels of government information, in addition to informal sources, were a press coverage or public events. Many of the recovery measures and projects financed from crisis management and recovery funds were not necessarily directly linked to the fight against the pandemic, but these were not preceded by social dialogue.
Key figures
Key figures
Comparative figures on working life in Hungary
|
2019 |
2020 |
% (point) change 2012 –2019 |
% (point) change 2019 –2020 |
|||||
|---|---|---|---|---|---|---|---|---|
|
Hungary |
EU27 |
Hungary |
EU27 |
Hungary |
EU27 |
Hungary |
EU27 |
|
|
GDP per capita |
13,270 |
27,970 |
12,640 |
26,230 |
31.5% |
11.5% |
-4.7% |
-6.2 |
|
Unemployment rate – total |
3.4 |
6.7 |
4.3 |
7.1 |
-7.6 |
-4.1 |
0.9 |
0.4 |
|
Unemployment rate – women |
3.5 |
7 |
4.5 |
7.3 |
-7.1 |
-4.0 |
1.0 |
0.3 |
|
Unemployment rate – men |
3.4 |
6.4 |
4.1 |
6.8 |
-7.9 |
-4.3 |
0.7 |
0.4 |
|
Unemployment rate - youth |
11.4 |
15 |
12.8 |
16.8 |
-16.8 |
-8.7 |
1.4 |
1.8 |
|
Employment rate – total |
72.6 |
73.4 |
72.8 |
72.9 |
8.9 |
2.4 |
0.2 |
-0.5 |
|
Employment rate – women |
65.3 |
67.9 |
65.3 |
67.5 |
7.3 |
3.0 |
0.0 |
-0.4 |
|
Employment rate – men |
80 |
79 |
80.3 |
78.3 |
10.4 |
1.8 |
0.3 |
-0.7 |
|
Employment rate – youth |
32.2 |
39.4 |
31.2 |
37.9 |
6.5 |
-0.4 |
-1.0 |
-1.5 |
Source: Eurostat – Real GDP per capita (chain linked volumes [2010], in EUR) and percentage change 2012–2020 (both based on sdg_08_10). Unemployment rate by sex and age – annual average (15–74 years, % active population) and youth (15–24 years) % [une_rt_a]; Employment rate by sex and age – annual average (15–64 years, unit % total population, employment indicator active population) % [lfsi_emp_a].
Background
Background
Economic and labour market context
Between 2012 and 2019, Hungarian GDP per capita enjoyed robust growth (31.5%), well above the EU average increase for the same period (11.5%). During this time, unemployment rates decreased for all categories, in particular for young people , for whom the unemployment rate was 16.8 percentage points lower than in 2012. It should be noted, however, that while overall unemployment continued to decrease in 2019 (3.4%) the improvement was not universal,: youth unemployment still stood at 11.4%. Employment rates also increased substantially over the period: total employment rate stood at 65.3% in 2019 for the age group of 15-64 constituting record heights in post-transition Hungary.. The biggest increase was in the male employment rate (+10.4 percentage points) between 2012 and 2019 while the female employment rate increased by 7.3 percentage points. Youth employment increased by6.5 percentage points between 2012 and 2019 when it reached 32.2%, remaining below the EU27 average of 39.4%. In 2020, the pandemic caused a GDP decrease of 4.7% compared to 2019. Unemployment increased, most significantly for youth (+1.4 pp).
More information on:
- European Commission: EURES - living and working in Hungary
Legal context
The overall legal framework was fundamentally revised in 2011–2012, a process completed by the new Civil Code (Act V of 2013) which came into force in March 2014. Act I of 2012 on the Labour Code ( 2012. évi I. törvény a munka törvénykönyvéről) regulates employment and labour issues in the private sector.
The legal framework of industrial relations has also been profoundly changed, primarily by transforming the institutions of national consultation and negotiation, and by revising the role of and rules on collective bargaining as part of the new Labour Code.
The right to and conduct of strikes is regulated by Act VII of 1989 (1 989. évi VII. törvény a sztrájkról) which was also significantly amended in 2010 and 2012.
A major change of working time regulation was adopted through the amendment of the Labour Code ( 2018. évi CXVI. törvény a munkaidő-szervezéssel és a munkaerő-kölcsönzés minimális kölcsönzési díjával összefüggő egyes törvények módosításáról ) in 2018.
During the COVID-19 outbreak, temporary provisions were applied to allow deviation from the Labour Code and some of them extended the employer’s unilateral decision-making power on issues like work schedule, reference period, home office. New major provisions on telework were introduced, to be applied uniformly if the employee works wholly or partly in a place other than the employer’s site.
Industrial relations context
Over the past two decades, Hungarian industrial relations have altered gradually from strong national tripartite cooperation to limited consultation only; from considerable collective bargaining coverage to a rather low and uneven ratio; from new structures (like works councils, sectoral dialogue committees, regional tripartite bodies) to less and weaker institutions. Meanwhile social partners have been struggling to keep their members and their role in the economy and society. Governments have always had a significant political role in forming industrial relations, not only by setting the legal framework, but also as a partner more or less committed to work together with social partners, counting also on their autonomous contribution.
In the early 1990s, the then Labour Code (Act XXII of 1992) established a special co-existence of works councils (for participation) and trade unions (for collective bargaining) at workplaces. They functioned in a special interdependence until 2012 when the new Labour Code (Act I of 2012) reshuffled their roles and powers while keeping their parallel presence, bringing about tangible changes in workplace relations.
In 2004 bipartite sectoral dialogue committees were introduced to address the weakest link of the industrial relations system, although there was no tradition of bipartite social partnership. Currently, they exist in 30 21 sectors/subsectors and are mainly engaged in discussing sector-related issues. Despite their well-developed legal and institutional framework, the main terrain of collective bargaining remains at the enterprise level.
For many years, the National Interest Reconciliation Council ( Országos Érdekegyeztető Tanács, OÉT – also under different names) provided a tripartite framework whose powers were virtually unchanged. Not only the annual agreement on mandatory minimum wages and the recommendations on general wage-increases were concluded here, but the parties also negotiated about various economic issues. The Orbán Government dissolved this central body in 2010, and replaced it with multipartite/tripartite structures with much more limited roles.
Actors and institutions
Actors and institutions
Trade unions, employers’ organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes the European, national, sectoral, regional (provincial or local) and company levels. This section looks into the main actors and institutions and their role in Hungary.
Public authorities involved in regulating working life
The key ministries regulating working life are the State Secretariat for the Employment Policy and the State Secretariat for Higher Education, Innovation and Vocational Training, both within the Ministry for Innovation and Technology (Innovációs és Technológiai Minisztérium, ITM); and the Deputy State Secretariat for Public Works Programmes and Water Management within the Ministry of the Interior ( Belügyminisztérium, BM).
Since 2020 ITM has overall responsibility for employment and labour market policy and strategy. ITM prepares the draft laws related to the world of work in general (including labour legislation and setting the legal framework for industrial relations and social dialogue). ITM represents the Government in national tripartite and multipartite dialogue.
BM has a specific role in setting the legal and financial framework for public works programmes as well as managing them involving the local governments.
The Administrative and Labour Courts were courts of first instance. They worked before with the Labour Arbitration and Mediation Service ( Munkaügyi Közvetítői és Döntőbírói Szolgálat, MKDSZ) and the National Labour Office – Labour and OSH Inspectorate ( Nemzeti Munkaügyi Hivatal – Munkavédelmi és Munkaügyi Igazgatóság, NMI MMH). Actually, Labour and OSH Inspectorate belongs to the Ministry for Innovation and Technology as priority area. Administrative and Labour Courts were abolished on 31 march, 2020 by the law CXXVII of 2019.The general successors are the Courts with the same territorial jurisdiction as were the Labour Courts.MKDSZ and the Labour and OSH Inspectorate were part of the National Labour Office (Nemzeti Munkaügyi Hivatal, NMH), and thus part of the national Public Employment Service (overseen by the Ministry for National Economy, NGM (Nemzetgazdasági minisztérium )). Further to the labour and health and safety inspectorates and the employment service-related functions, NMH managed the administration of vocational education and training as well as adult training. NMH supported and managed the sectoral social dialogue committees ( ágazati párbeszéd bizottság, ÁPB), through its special unit, the Centre for Social Dialogue (Társadalmi Párbeszéd Központ, TPK). NMH merged with the NGM and MKDSZ was abolished in 2015. The NGM was abolished in 2018, its successor used to be the Ministry of Finances, PM ( Pénzügyminisztérium). After a short transition period, the employment issues have been transferred to the Ministry for Innovation and Technology. Currently, the Labour Consultation and Dispute Resolution Service (Munkaügyi Tanácsadó és Vitarendező Szolgálat, MTVSZ) operates in place of the MKDSZ since 2016, but there are a few differences between MKDSZ and MTVSZ. The most important are the following: in MTVSZ, the labour law approach is the dominant one and the most prominent of the types of procedure is counseling. As far as the issues involved are concerned, the door is open as wide as possible along the dynamic interpretation of the concept of interest-dispute. Due to the regional organisation of MTVSZ, local presence is strong, and whereas MKDSZ was a state mechanism, MTVSZ is rooted in autonomous and social partnership.
Representativeness
Representativeness of social partners at national level is not explicitly incorporated in Hungarian legislation. Nevertheless, the law on the main national civil dialogue body, the National Economic and Social Council ( Nemzeti Gazdasági és Társadalmi Tanács, NGTT) stipulates detailed criteria for the social partners’ participation in the NGTT. This is widely considered to function as a sort of representativeness criteria at national level.
NGTT was established by Act XCIII of 2011. The members of NGTT actually (2020) include six trade union confederations and fourteen employers’ organisations. Other members are listed in the relevant tables below, representing the national chambers, the foreign chambers which operate in Hungary, science experts, art representatives and traditional churches. Union and employer confederations are invited to participate in NGTT (according to Article 9) if they meet the following set of criteria:
For unions, if they have:
- a member organisation in at least four economic sectors and at least 12 subsectors;
- a member organisation in at least eight counties (or its member organisations have regional organisations);
- plant organisations at a minimum of 150 employers.
For employers, if they have:
- a member organisation in at least two economic sectors and at least six subsectors;
- member organisations in at least ten counties;
- affiliated members or member organisations representing at least 1,000 companies or companies employing altogether 100,000 employees.
In the main tripartite social dialogue body, the Permanent Consultative Forum of the Private Sector and the Government ( Versenyszféra és a Kormány Állandó Konzultációs Fóruma, VKF), no representativeness criteria is applied. VKF is based on an agreement, which does not refer to representativeness, but provides the list of social partners involved, based on the parties’ mutual recognition. Three trade union confederations (LIGA, MOSZ, MASZSZ) and three employer organisations (ÁFEOSZ, MGYOSZ, VOSZ) participate in VKF, all of them are members of NGTT as well.
More information on representativeness of the main social partner organisations can be found in Eurofound’s representativeness study of the cross-industry social partners or in Eurofound’s sectoral representativeness studies.
- Topic: Representativeness
Trade unions
About trade union representation
According to the Labour Code (Act I of 2012), every worker has the right to join a trade union in order to promote his/her economic and social interests, or not join a union (Art. 231). The detailed rules how this right can be exercised is stipulated by Act CLXXV of 2011 on the right of association, the status of general public benefit, and on the functioning and support of civil organisation; Act CLXXXI of 2011 on the registration of civil organisations and the related administrative procedure; and by the Civil Code (Act V of 2013). Public sector employees also have the right to organise, but their right of collective bargaining is limited (for public employees) or is absent (for civil servants in public administration).
The unionisation rate is around 7,4% (1st quarter 2020 (https://www.ksh.hu/stadat_evkozi_9_18)). Workplace trade unions are affiliated to various sectoral or regional federations, and through them (or sometimes directly) to six national trade union confederations. Pluralisation also appears in workplaces.
The new Labour Code (Act I of 2012) amended the rules on collective labour law, including modifying the right to collective bargaining at company and higher level.
No information is available on the effect of the above legal modifications on the unionisation rate, but presumably it has not affected the confederations’ relative weight, or the national unionisation rate.
According to the new Labour Code, works councils also have the right to negotiate and agree on the regulation of working conditions (except wages, or wage-related issues), if the employer has not yet concluded a collective agreement, or if there is no trade union eligible to conclude a collective agreement at the given employer (Art. 268 Sec 1). An agreement concluded in this way is called a plant agreement (üzemi megállapodás). A plant agreement with this wider content is, however, not considered to be a collective agreement and is beyond the scope of mandatory reporting, even though parties may negotiate as for collective bargaining over the normative content (for instance, parties can agree on a longer working time reference period or more annual overtime). Since there is no obligation to report on plant agreements to the Ministry, no information is available on the number and content of this type of agreement in effect.
Trade union membership and trade union density
|
2015 |
2016 |
2017 |
2018 |
2019 (2020 1st quarter) |
Source |
|
|
Trade union density in terms of active employees |
n.a. |
9.2 |
n.a. |
8.3 |
n.a |
OECD/AIAS ICTWSS Database 2021 |
|
Trade union density in terms of active employees |
9.4%(9% survey data) |
8.5% |
8.1% |
7.9% |
7.4% (survey data) |
OECD/Visser (2014) and OECD Stat., Hungarian Central Statistical Office (2015 and 2020 survey data |
|
Trade union membership in 1000s |
n.a. |
356 |
n.a. |
332 |
n.a. |
OECD/AIAS ICTWSS Database 2021 |
|
Trade union membership in 1000s |
351 (329 survey data) |
330 |
323 |
no data |
276 (survey data) |
OECD/Visser (2014) and OECD Stat., Hungarian Central Statistical Office (2015 and 2020 survey data) |
Main trade union confederations and federations
There are five trade union confederations at national level, all affiliated to ETUC and one more, not affiliated to ETUC.
Formerly – with the exception of one - all of them acted on the worker side of the National Interest Reconciliation Council (Országos Érdekegyeztető Tanács, OÉT). Five of them since 2011 and the sixth since 2016 are members of the multipartite civil dialogue forum, the NGTT, while only LIGA, MOSZ and MASZSZ participate in the VKF, the tripartite national body for the private sector.
Regarding membership, MSZOSZ – now integrated into MASZSZ – used to be the largest national organisation. In 2020 it had 104,000 active members and around 150,000 members including pensioners, apprentices, etc.. .
The effect of the new Labour Code, the decline of social dialogue in general, the unfavourable political climate and a long-standing need for integration has begun a merger process among some national trade union confederations since 2013. The Alliance of Autonomous Trade Unions (Autonóm Szakszervezeti Szövetség, ASZSZ), Forum for the Co-operations of Trade Unions (Szakszervezetek Együttműködési Fóruma, SZEF) and National Confederation of Hungarian Trade Unions (Magyar Szakszervezetek Országos Szövetsége) announced their integration on 1 May 2013. The plan was to create a new confederation – and this was accomplished – but the process took longer than planned and in the meantime the Forum for the Co-operations of Trade Unions stepped back. At present, the new confederation is operating as the Hungarian Trade Union Confederation (Magyar Szakszervezeti Szövetség, MASZSZ).
National trade union confederations are not directly involved in collective bargaining in the traditional understanding of the term, in a bipartite manner. They are, however, involved in tripartite negotiations on the minimum wage and wage recommendation in the framework of VKF, as indicated in the table below.
Main trade union confederations and federations
|
Long name |
Abbreviation |
Members (active) 2020 |
Involved in collective bargaining |
|
Hungarian Trade Union Confederation ( Magyar Szakszervezeti Szövetség) |
MASZSZ |
104,000 |
Yes (if tripartite consultation on the minimum wage and negotiation on wage increases in the framework of VKF is considered as collective bargaining) |
|
Forum for the Co-operation of Trade Unions (Szakszervezetek Együttműködési Fóruma) |
SZEF |
40,967 |
No |
|
Confederation of Unions of Professionals ( Értelmiségi Szakszervezeti Tömörülés) |
ÉSZT |
38,500 (estimated) |
No |
|
National Confederation of Workers’ Councils ( Munkástanácsok Országos Szövetsége) |
MOSZ |
50,000 (estimated, active and inactive together) |
Yes (if tripartite consultation on the minimum wage and negotiation on wage increases in the framework of VKF is considered as collective bargaining) |
|
Democratic League of Independent Trade Unions ( Független Szakszervezetek Demokratikus Ligája) |
LIGA |
100,200 |
Yes (if tripartite consultation on the minimum wage and negotiation on wage increases in the framework of VKF is considered as collective bargaining) |
In 2014, two confederations – the Autonomous Trade Union Confederation ( Autonóm Szakszervezetek Szövetsége) and National Confederation of Hungarian Trade Unions (Magyar Szakszervezetek Országos Szövetsége ) – announced their intention to merge by establishing the Hungarian Trade Union Confederation (Magyar Szakszervezeti Szövetség, MASZSZ), creating in effect the country’s biggest confederation. Based on their announcement, the new organisation had then approximately 115,000 members (active employees) and it has intended to represent unity and solidarity in the trade union movement.
Employers’ organisations
About employers’ representation
Affiliation to employer organisations is voluntary.
At national level, nine employer organisations have played a role – they were also the members of the employer side of the former OÉT. Due to historical reasons, some of them are actually sectoral organisations, which are active both at national and sectoral level.
The elimination of OÉT created a serious challenge for employer organisations, since for many of them the main function of the body was to take part in national social dialogue and it had the expertise, staff and infrastructure to do this. Furthermore, being a member of OÉT was an additional reason for members when deciding to affiliate to the given employer organisation. Similarly to trade union confederations, only three national employer confederations (please see below) are members of VKF, while all the nine organisations and five other employers’ organisations participate in NGTT.
Since 1 January 2012, companies and entrepreneurs have to register at the relevant economic chamber to comply with Act CXXI of 1999 (as modified by Act CLVI of 2011). This mandatory registration costs 5000 HUF (around €16) annual registration fee, but does not provide the same rights and obligations as those of full members of chambers. Employer organisations were hostile to the mandatory registration, since it does not give companies any benefit and could simply be considered as a tax. It weakens companies’ willingness to join employer organisations, which are based on the freedom of association.
Employers’ organisations – membership and density
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
Source |
|
|
Employers’ organisation density in terms of active employees |
n.a. |
n.a |
n.a. |
n.a. |
n.a |
n.a. |
OECD/AIAS ICTWSS Database 2021 |
|
Employers’ organisation density in private sector establishments* |
n.a |
n.a. |
n.a. |
n.a. |
5% |
n.a. |
|
|
Employers’ organisation density in private sector establishments |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
appr. >49% |
author’s own calculation |
* Percentage of employees working in an establishment which is a member of any employer organisation that is involved in collective bargaining.
Main employers’ organisations
The two most significant employer organisations are MGYOSZ and VOSZ in the private sector. Together with ÁFEOSZ, they are members of VKF. These three employer organisations have managed to keep their role in national level consultation and negotiation, while the others tend to boost their activity in sectoral social dialogue, or are forced to look for different ways of adaptation to the changed structure of social dialogue.
Main employers’ organisations and confederations
|
Long name |
Abbreviation |
Members |
Year |
Involved in collective bargaining |
|
Confederation of Hungarian Employers and Industrialists ( Munkaadók és Gyáriparosok Országos Szövetsége) MGYOSZ is the Hungarian member of BusinessEurope. Its members are sectoral, professional and regional federations but it affiliates companies directly as well (mainly multinationals, large companies). . |
MGYOSZ |
152 |
2020 |
Yes (if tripartite consultation on the minimum wage and negotiation on wage increases in the framework of VKF is considered as collective bargaining) |
|
Hungarian Federation of Consumer Co-operative Societies and Trade Associations ( Általános Fogyasztási Szövetkezetek és Kereskedelmi Társaságok Országos Szövetsége ) Members are largely food retail and wholesale companies and somecooperatives.It has some members from the catering and the tourism sector as well. |
ÁFEOSZ |
1200 |
2020 |
Yes (if tripartite consultation on the minimum wage and negotiation on wage increases in the framework of VKF is considered as collective bargaining) |
|
National Association of Entrepreneurs and Employers ( Vállalkozók és Munkáltatók Országos Szövetsége) VOSZ also has large enterprises amongst its members, but it mainly affiliates SMEs, as direct members. |
VOSZ |
58,000 |
2020 |
Yes (if tripartite consultation on the minimum wage and negotiation on wage increases in the framework of VKF is considered as collective bargaining) |
|
National Federation of Traders and Caterers ( Kereskedők és Vendéglátók Országos Érdekképviseleti Szövetsége ) KISOSZ organises Hungarian-owned self-employed and family entrepreneurs – thus its members are micro, small and medium-sized companies. |
KISOSZ |
40,000 |
2020 |
No |
|
Hungarian Industrial Association ( Magyar Iparszövetség) Members are regional and professional federations of Hungarian-owned SMEs. |
OKISZ |
23 |
2020 |
No |
|
Hungarian Association of Craftsmen’s Corporation ( Ipartestületek Országos Szövetsége) Members are regional and professional federations, guild units of small craft and artisan businesses. |
IPOSZ |
170 |
2020 |
No |
|
National Federation of Agricultural Co-operators and Producers ( Mezőgazdasági Szövetkezők és Termelők Országos Szövetsége ) The largest employer organisation in the agricultural sector, the only one which affiliates agricultural enterprises and subsectoral organisations. With the cessation of OÉT, it is active in the agricultural sectoral social dialogue committee. |
MOSZ |
1100-1200 |
2020 |
No |
|
National Association of Strategic and Public Utility Companies ( Stratégiai és Közszolgáltató Társaságok Országos Szövetsége ) STARTOSZ affiliates state-owned – mainly public utility – companies. |
STRATOSZ |
21 |
2020 |
No |
Tripartite and bipartite bodies and concertation
Since 2012, the only forum of tripartite dialogue at national level is the Permanent Consultative Forum of the Private Sector and the Government ( Versenyszféra és a Kormány Állandó Konzultációs Fóruma, VKF). It cannot be considered a replacement for OÉT (which ceased to exist in 2011). The operation of VKF is not regulated by law. Its sessions are organised on an ad hoc basis, without an annual agenda, and in a way that does not enable parties to have profound debates. Its meetings usually are not open to public. Annual consultations and negotiations on national minimum wages and the wage recommendations, and on the subsequent agreements, have been the only constant topics of national level tripartite dialogue recently.
The National Economic and Social Council ( Nemzeti Gazdasági és Társadalmi Tanács, NGTT) is a multipartite forum to consult on wide-range of socio-economic issues, involving large number of actors as detailed earlier. It cannot be considered as a social dialogue body. It is a symbolic consultative civil dialogue body, without any negotiation function.
Sectoral social dialogue committees (21 at present) have existed in Hungary since 2004. They have been established to facilitate sectoral dialogue in general, including sectoral collective bargaining which has not yet been fully integrated into the system of collective bargaining. Sectoral social dialogue committees are governed by legislation (Act LXXIV of 2009) which regulates the operation of sectoral and mid-level social dialogue. Legislation also stipulates in detail the criteria for representativeness at sectoral level. Legislators had the explicit intention when drawing up the new Labour Code (Labour Code) to foster trade unions’ bargaining activity and shift collective bargaining from the traditional company level to the level of sectors. According to experience so far, the new code has not resulted in the multiplication (or increase) of the number of sectoral level collective agreements.
Main tripartite and bipartite bodies
|
Name |
Type |
Level |
Issues covered |
|
National Economic and Social Council ( Nemzeti Gazdasági és Társadalmi Tanács, NGTT) |
multipartite |
national |
Overall social-economic issues, strictly for information and consultation without the right to negotiating (or collective bargaining) |
|
Permanent Consultative Forum of the Industry and the Government ( Versenyszféra és a Kormány Érdekegyeztető Fóruma, VKF). |
tripartite |
national |
Minimum wage, annual recommendation for general wage increase, for negotiation; labour-law related issues for consultation. Other issues in the area of work-related taxation or health and safety, sometimes EU-related legislation, but only on an ad hoc basis, and for information or consultation only |
|
Sectoral social dialogue committees ( Ágazati Párbeszéd Bizottságok, ÁPB) |
bipartite |
sectoral |
Issues covered agreed by the parties. Committees have the right to collective bargaining |
Workplace-level employee representation
Trade unions and works councils coexist in Hungarian workplaces. Their role, rights and obligations, as well as their relationship with the management/employer are regulated by the Labour Code (Act 1 of 2012), Part Three on Industrial Relations.
Role, rights and obligations of unions and works councils
|
Trade union Szakszervezet |
Works council/ body of worker participation |
|
Promoting workers’ economic and social interests |
Monitoring compliance with legislation at the workplace. |
|
Right of collective bargaining |
Right to conclude a plant agreement: regulating also working conditions (except wages), if there is no representative trade union or an already concluded collective agreement at the employer (considered as a quasi-collective bargaining right). When a collective agreement or a trade union eligible for collective agreement is in place at the employer the plant agreement should strictly cover issues related to the original mission of works councils. |
|
Right to seek employers’ information related to workers’ employment contract, economic and social interests. The employer is not obliged to inform them. |
An employer is obliged to inform the works council regularly about: - basic economic situation of the employer - wage-related issues, working time schemes, basic employment situation of the employer - number and working position of tele-workers and agency workers at the enterprise. |
|
Right to provide its opinion and initiate consultation with the employer about the employer’s planned decisions/measures. |
Employer is obliged to seek the opinion of works council on each of his/her decisions/measures which concern the large number of workers, 15 days prior to decision. |
|
Right to represent members’ interests at court, authorities and other institutions |
Co-determination right on the use of companies welfare funds. |
|
Right to strike |
Ban on organising strike. |
The new Labour Code (Act I of 2012) has introduced specific modifications in relation to industrial relations at workplaces. Key points are as follows.
- Prior to 2012, trade unions’ representativeness at enterprise level depended on the number of their members elected to the works council. In the new Labour Code this rule is replaced by a 10% threshold (number of trade union members/total number of workers at the employer) set in relation to the right of collective bargaining.
- If there is no ‘representative’ trade union at the employer (a trade union empowered to enter into collective bargaining) and no collective agreement is in force, the works council has the right to conclude a ‘plant agreement’ with the employer which also regulates working conditions, except wages.
- Works councils possess an ‘inspection’ function and have the right to follow the lawful operation of the employer; however, only a union has the right to represent workers in complaints of unlawfulness or other disputes.
- An employer now has information and consultation obligations towards a works council only (under the former legislation, the enterprise-level trade union also had this right.)
Regulation, composition and competences of the bodies
|
Regulation |
Composition |
Competences of the body Involved in company level collective bargaining? |
Thresholds/rules when they need to be/can be set up |
|
|
Works council (üzemi tanács, ÜT) |
Labour Code Art. 230–Art. 234 and especially Art. 235–Art. 268 |
Members elected by workers |
Right to conclude ‘plant agreement’ which under specific conditions can also regulate working conditions, except wages or wage-related issues stipulated in the relevant chapter of the Labour Code |
50 employees (non-mandatory). |
|
Plant representative (üzemi megbízott) |
Labour Code Art. 269 |
One elected representative, in case the number of employees is below 50. |
Worker participation in the absence of works council. |
Enterprises under 50 employees (non-mandatory). |
|
Conciliation committee (egyeztető bizottság) |
Labour Code Art. 291–Art. 293 |
Bipartite body (representatives of employer, and trade union or works council in the same number) under the chairpersonship of a jointly selected independent person. |
Solving disputes between trade unions and the employer or between works council and the employer. |
No threshold, ad hoc or permanent body (in the latter case it has to be stipulated by the plant agreement or the collective agreement). |
Industrial action and disputes
Industrial action and disputes
Legal aspects
The Fundamental Act (of 25 April 2011) guarantees workers, employers and their organisations, along with the right to collective bargaining, the right to take collective action to defend their interests, including the right to discontinue work (Act XVII Section (2)).
While industrial actions initiated by workers or their organisations are regulated in a fairly detailed way, especially the strikes, legislation is silent on the most obvious possible industrial action by employer, the lock-out.
The right to strike is regulated by Act VII of 1989. The right to strike is guaranteed to individual workers in pursuit of their own demands, while the right to organise a solidarity strike is granted only to trade unions. As a basic rule, a strike can be called only after attempts to resolve conflicting interests have been made for at least seven days (Art. 2).
There are some limitations both regarding possessing and exercising the right to strike. No right to strike is given to the staff of law enforcement agencies, armed forces and the judiciary. Civil servants of the public administration have the right to strike but may only exercise it according to the special regulations fixed in the agreement between the Government and the relevant trade unions.
The Act lists the circumstances when strike action is unlawful (Art. 3).
In case of activities of fundamental public concern – such as, in particular, mass transportation, telecommunications, electricity, water, gas and other energy supply – the right to strike may only be exercised so as not to impede the provision of services at a level deemed sufficient. The ‘sufficient level’ could be defined by an Act of the Parliament (according to the amendments of Act on strike action in 2010 and 2012), which already has happened in some areas. These regulations strongly limit the right to strike in the certain public services.
Other forms of industrial action are much more common in Hungary than strikes. Such actions are: protest meetings and protest rallies, demonstrations, petitions and collecting signatures. The first two are regulated by the new Act LV of 2018 on the right of assembly. The new law is more restrictive than its predecessor: demonstrations must be notified months earlier, and the police is given relatively broad discretion about banning assemblies. Petitions and collecting signatures are regulated by Act CLXV of 2013 on complaints and by Act CXXXVIII of 2013 on referendums, European initiatives and the procedure of the referendum.
Industrial action developments 2015–2019
|
2015 |
2016 |
2017 |
2018 |
2019 |
|
|
Working days lost per 1000 employees |
n.a. |
11 |
1 |
12 |
16 |
|
Number of strikes |
2 |
7 |
5 |
6 |
12 |
Source: Hungarian Central Statistical Office
Dispute resolution mechanisms
Collective dispute resolution mechanisms
The collective dispute resolution mechanisms are regulated by the Labour Code (Act I of 2012), Art. 291 – Art. 293.
Important to note that the Labour Code uses the term ‘collective labour disputes’, which is interpreted as solely collective interest disputes.
Depending on the parties in argument or disagreement, the employer and the works council or the employer and the trade union may set up an ad hoc conciliation committee (egyeztető bizottság) to resolve their disputes (see also earlier under workplace-level employee representation). The plant agreement or the collective agreement may contain provisions for a standing conciliation committee as well.
The conciliation committee is composed of an equal number of members delegated by the employer and the works council/the trade union, and an independent chairperson. The employer and the works council/ the trade union may agree in writing in advance to abide by the decision of the committee. In this case the committee’s decision is binding. In the case of a tied vote, the chairperson’s vote is decisive.
Some collective disputes specified by the Labour Code (Art. 236 Sec 4; Art. 263) should be decided by an arbitrator.
The Labour Mediation and Arbitration Service (Munkaügyi Közvetítői és Döntőbírói Szolgálat, MKDSZ) – as an alternative dispute resolution body – could be invited by the parties in dispute to assist (through conciliation or mediation) or to arbitrate and since November 2016 it is the Labour Advisory and Dispute Resolution Service (Munkaügyi Tanácsadó és Vitarendező Szolgálat, MTVSZ).
Individual dispute resolution mechanisms
According to the Labour Code (Art. 285), the main individual dispute resolution bodies are the courts. Individual labour disputes are decided by specialised courts, by the administrative and labour courts (which are on the district court level, but they operate only in the county seat towns). These courts provide for the first instance, while cases not settled are presented to the Civil courts in the second instance.
Regarding the use of dispute resolution mechanisms, data are available on employment disputes at courts. The number of these disputes is relatively constant, between 140,000–150,000 cases per year. The vast majority of cases are resolved in the first instance, and fewer than 2% go to appeal.
Use of dispute resolution mechanisms
|
2015 |
2016 |
2017 |
2018 |
2019 |
|
|
Court (Litigation) |
14,273 |
13,477 |
12,667 |
6,170. |
4,615 |
|
Mediation (Non-litigious proceedings) |
1,346 |
2,001 |
1,463 |
853 |
915 |
|
Labour Mediation and Arbitration Service/Labour Advisory and Dispute resolution Service (since 2017) |
- |
Source: Court Statistics
Individual employment relations
Individual employment relations
Individual employment relations are the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over the terms and conditions governing the employment relationship. This section looks into the start and termination of the employment relationship and entitlements and obligations in Hungary.
- European Industrial Relations Dictionary: Employment relationship
Start and termination of the employment relationship
Requirements regarding an employment contract
According to the Labour Code, an employment relationship is established by entering into an employment contract (Art. 42). In some cases a medical examination is required, to certify fitness to work.
Employment contracts may only be concluded in writing. If the employment was not agreed in writing it is invalid and can only be invoked by the worker within 30 days.
The minimum working age is sixteen (Labour Code, Art. 34 Sec (2)). By way of derogation from the above, any person of at least 15 years of age receiving full-time school education may enter into an employment relationship during school holidays. By authorisation of the relevant authority, young persons under 16 may be employed for the purposes of performance in cultural, artistic, sports or advertising activities (Labour Code, Art. 34 Sec (2) and (3)).
There are special requirements in the public sector set by the relevant law (especially Act CXCIX of 2011 on civil servants; Act XXXIII of 1992 on public employees; and Act XLIII of 1996 on the armed forces). One special requirement is, for example, that secondary education is required for civil servants and law enforcement officers. Most government sector jobs require no criminal convictions. The minimum working age in the public sector is usually 18. Specific jobs in the government sector require appropriate educational attainment which is regulated by the relevant acts and the implementation decrees of the given acts.
Dismissal and termination procedures
The Labour Code (Art. 64) stipulates three major forms of termination of employment relationship:
- termination by notice,
- termination with immediate effect,
- termination by mutual agreement.
Termination by notice (Labour Code, Art. 65–Art. 70) can be initiated by both the worker and the employer. There are various bans on dismissal linked to pregnancy, maternity and childcare. Employers are required to justify the dismissal. A worker may be dismissed only for reasons in connection with his/her behaviour in relation to employment relationship, or with his/her ability or in connection with the employer’s operations. Workers are not required to give reasons for terminating their employment relationship. The basic notice period is 30 days which has to be extended by between five and 60 days in proportion with the length of service, if employment is terminated by the employer. A dismissed worker with at least three years of service is also entitled to a severance payment. Severance payment is also due in some other cases (Labour Code Art. 77) such as if the employment relationship is ended without just cause.
There are special provisions regarding collective dismissals (Labour Code Art. 71 – Art. 76) in line with the EU directive. For example, negotiation with the works council is compulsory and the employer has to inform the works council in writing about the reason of the collective dismissal.
Both the employer and the worker can terminate an employment relationship with immediate effect and without notice if the other party:
- wilfully or by gross negligence commits a grave violation of any substantive obligations arising from the employment relationship;
- otherwise engages in conduct that would render the employment relationship impossible. (Labour Code Art. 78 – Art. 79)
The employment relationship can be terminated by mutual agreement. The term mutual agreement is loosely regulated by the Labour Code: the parties have considerable freedom and only the general principles have to be followed.
Some special groups – for example executive officers, temporary agency workers – are subject to less stringent regulations.
In the public sector, termination of employment has specific, often more specific and binding rules; the notice period is different and the severance payment is higher. The specific rules are regulated by the relevant acts (primarily in Act CXCIX of 2011 on civil servants; Act XXXIII of 1992 on public employees).
Entitlements and obligations
Parental, maternity and paternity leave
Although the social system has been transformed in Hungary relatively significantly, radical changes have not occurred in this field. One of the main changes is that the uptake of paternity leave is growing and from 2014 people who receive GYED and GYES (see below) can work after the first birthday of the child.
The table below gives an overview of the main characteristics of the statutory leave arrangements in Hungary. Specific rules (on adoptive parents, foster parents, twins and so forth) can be found in Act LXXXIII of 1997 on health insurance allowances and Act LXXXIV of 1998 on family support as amended for the given years.
Parental leave in Hungary is a family entitlement, so parents can choose whether the father or the mother will stay with the child, although usually it is the latter.
Regarding the amount of benefits provided, and the financing institution, there is a difference between ‘insured' and ‘non-insured’ people. Persons can be considered as insured if they have at least 365 days of employment within two years of the birth of a child. The abbreviations for the various benefits are as follows:
- CSED – Maternity care fee (Csecsemőgondozási díj)
- GYED – Childcare fee (Gyermekgondozási díj)
- GYESE – Child home care allowance ( Gyermekgondozást segítő ellátás segély)
Statutory leave arrangements
|
Maternity leave (for insured mothers only) |
|
|
Maximum duration |
24 weeks, out of which 4 weeks could be pre-natal (non-mandatory). |
|
Reimbursement |
CSED - 70% of the previous average daily earning. |
|
Who pays? |
Social insurance (National Health Insurance Fund of Hungary, Nemzeti Egészségbiztosítási Alapkezelő www.neak.hu |
|
Legal basis |
Act LXXXIII of 1997 |
|
Parental leave (for insured parents) |
|
|
Maximum duration |
a) After the maternity leave, until the child’s second birthday, b) After the second birthday of the child until his/her third birthday (non-mandatory) |
|
Reimbursement |
a) GYED 70% of the previous average daily earning, but maximum the 70% of twice of the statutory minimum wage (in 2020: HUF 225,400/month, about EUR 644) b) GYESE Flat-rate benefit equal to the amount of the minimum old-age pension (in 2020: monthly gross HUF 28,500, about EUR 81) |
|
Who pays? |
a) social insurance (National Health Insurance Fund of Hungary) b) Treasury |
|
Legal basis |
a) Act LXXXIII of 1997 b) Act LXXXIV of 1998 |
|
Parental leave (for non-insured parents) |
|
|
Maximum duration |
Until the child’s third birthday (non-mandatory) |
|
Reimbursement |
GYESE Flat-rate benefit equal to the amount of the minimum old-age pension (in 2020 monthly gross HUF 28,500 which is EUR 81). |
|
Who pays? |
Treasury |
|
Legal basis |
Act LXXXIV of 1998 |
|
Paternity leave |
|
|
Maximum duration |
5 days, to be taken in the first two months following the birth All employed fathers are eligible. (non-mandatory) |
|
Reimbursement |
Absence fee (an additional benefit for fathers) |
|
Who pays? |
Social insurance (Health Insurance Fund) |
|
Legal basis |
Act I of 2012 |
|
Additional paid leave to the annual paid leave for workers having more children |
|
|
Maximum duration |
Length depends on the number of children: 1 child = 2 days; 2 children = 4 days; 3 or more children; 7 days. For both employed mothers and fathers. (non-mandatory) |
|
Reimbursement |
Absence fee |
|
Who pays? |
The employer |
|
Legal basis |
Act I of 2012 |
Sick leave
Sick leave and the related payment are regulated by Act LXXXIII of 1997.
For the duration of sick leave, 70% of the absence fee, which is based on the average wage of the worker and is defined by the Labour Code, is paid.
Retirement age
Retirement age is regulated by Act LXXXI of 1997 on Social Security Pension Benefits.
The retirement age for old-age pension benefits under the social security system will be 65 years from 2022. The retirement age has been gradually increasing since 2010. The other eligibility criterion for a full old-age pension is at least 20 years of service. A partial retirement pension is granted to people who have reached the relevant retirement age for the old-age pension and have at least 15 years of service.
There is a gender difference: full old-age pension benefit is due to any woman having at least 40 years of service, irrespective of age.
In the public sector civil servants and some other officers are obliged to retire at the age of 70. There is a new regulation that a government sector employee should not have a parallel pension and salary; if past retirement age, he/she has to choose whether the pension is suspended or the paid public sector employment has to be terminated.
In the armed forces and law enforcement agencies, employees can retire five years earlier.
Pay
Pay
Pay: For workers, the reward for work and main source of income; for employers, a cost of production and focus of bargaining and legislation. This section looks into minimum wage setting in Hungary and guides the reader to further material on collective wage bargaining.
Minimum wages
The statutory minimum wage is set by the Government after consultation with the multipartite national civil dialogue body, the National Economic and Social Council ( Nemzeti Gazdasági és Társadalmi Tanács, NGTT) (Act I of 2012 on Labour Code, Labour Code, Art. 153. Sec (1) and Act XCIII of 2011 on NGTT).
Prior to this consultation, the Government also consults the social partners of the private sector within the national tripartite body, the Permanent Consultative Forum of the Private Sector and the Government (VKF). This consultation has no basis in law beyond the agreement of the parties to VKF (agreement on the establishment of VKF and its standing order, dated 22 February 2012.)
In practice, VKF is the terrain of wage negotiations, partly as a legacy of the National Interest Reconciliation Council ( Országos Érdekegyeztető Tanács, OÉT), the former national tripartite body, which used to have a co- determination right on the minimum wage. If the parties to VKF agree on the minimum wage, this decision becomes a proposal to be presented by the Government to NGTT for consultation. If no agreement is achieved within VKF, the Government can put forward its own proposal. In both cases the final decision on the minimum wage rests with the Government, taking into consideration the outcome of the usually rather formal discussion within NGTT.
The minimum wage is legally binding on all workers, and is implemented by annual government decrees. There are two specific exceptions.
Workers employed in jobs which require at least secondary educational attainment should get the so-called guaranteed wage minimum, which is higher. The guaranteed wage minimum is set by the general procedure as described above.
Workers employed in public works programmes, whose wage is determined separately by the Government only, without any consultation with social partners. Their wages are implemented by programme-related government decrees.
Sectoral collective bargaining could in theory lead to higher minimum wages for each sector’s respective area. However, in practice there are only a small number of sectoral agreements, and most reiterate the statutory minimum wage.
For more information regarding the level and development of minimum wages, please see:
- Eurofound publication series: Minimum wages in the EU
- Eurostat: Minimum wage statistics
Collectively agreed pay outcomes
For more detailed information on the most recent outcomes in terms of collectively agreed pay, please see:
- Topic: Collective bargaining
Working time
Working time
Working time: ‘Any period during which the worker is working, at the employer’s disposal and carrying out his activities or duties, in accordance with national laws and/or practice’ (Directive 2003/88/EC). This section briefly summarises regulation and issues regarding working time, overtime, part-time work as well as working time flexibility in Hungary.
Working time regulation
The Labour Code (Act 1 of 2012, Labour Code) regulates working time in Hungary.
The standard normal working time is eight hours a day (Labour Code Art. 92(1)) or 40 hours a week (calculated on the basis of the standard work pattern of five days a week (Labour Code Art. 97(2)), and eight hours daily working time).
In two specific circumstances (Labour Code Art. 92(2)), parties may agree on a longer maximum daily working time, up to 12 hours (or 48 total weekly working hours). This so-called extended daily working time could only apply to workers:
- working in stand-by jobs;
- who are relatives of the employer or the owner.
The Labour Code provides a specific list of those provisions where derogation from the working time statutory regulations by collective agreement is: not allowed at all (Art. 135 (1)); allowed only for the benefit of workers (Art. 135(2)); or for specific groups of workers (Art. 135(3)).
In two cases collective agreements could provide workplaces with significantly more flexibility than the basic rules of the Labour Code allow.
- While the working time frame (Art. 93-94) – that is, the reference period for calculating the average weekly and daily working time – is capped at four months, it can be extended in special circumstances (like shift work, continuous work, stand-by jobs) to six months, or it can be extended – according to the latest amendment in December 2018 – up to 36 months by collective agreement.
- While overtime is capped at 250 hours annually (Art. 109), it can be increased to a maximum of 300 hours by collective agreement (Art. 135(3)) or to 400 hours – according to the amendment mentioned above called voluntary overtime – by a written agreement between the firm and the individual employees (Art. 109).
For more detailed information on working time (including annual leave, statutory and collectively agreed working time), please consult:
- Topic: Working time
Overtime regulation
Overtime is defined by the Labour Code (Act I of 2012), Art. 107 as:
- working time which exceeds daily working hours – if neither the so-called working time frame nor the so-called longer settlement period is applied;
- working time which exceeds the total working time set for the period of working time frame;
- working time which exceeds the total working time calculated for the longer settlement period;
- on-call time (partially or entirely if the time spent actually in work cannot be measured).
The term ‘working time frame’ (munkaidőkeret) is synonymous with the reference period in the meaning of the 2003/88/EC Directive on the management of working time. The ‘longer settlement period’ ( elszámolási időszak) (Art. 98 of Labour Code) can be applied in the absence of a working time frame. This working time arrangement is used to ‘settle’ the plus or minus (credit and debit) working hours accrued or not worked in the first week of the settlement period. The employer is thus entitled to require the worker to complete his/her weekly standard normal working time over a longer period. Both the length (up to 16 weeks as a general rule, but up to a maximum 36 months in certain cases if agreed by collective agreement) and the starting date of the settlement period are determined by the employer.
The annual limit on overtime is 250 hours (Art. 109 of Labour Code), which could be increased to 400 hours by written agreement between employee and employer. The employer can request overtime not only in reasonable circumstances (as prior to 1 July 2014) but in any circumstances with some sort of justification.
Overtime is compensated by:
- 50% wage supplement or time in lieu, according to the parties’ agreement;
- 100% wage supplement on weekly rest days (not necessarily Sundays but according to the working time schedule) and on public holidays or 50% wage supplement if time in lieu is also granted.
On-call time has special compensatory provisions.
The maximum total working weekly and daily hours are as follows:
- for standard normal working time – 48 hours weekly and 12 hours daily (Labour Code Art. 99 Sec 2);
- extended daily working time – 72 hours weekly and 24 hours daily (Labour Code Art. 99 Sec 3) based on written agreement;
- in the health sector – 60 hours and 12 hours (Act 2003/84, Art. 12/F (as modified by 2012/79).
There are further specific provisions in cases where health workers only perform on-call duties during the working time beyond the normal working hours.
Part-time work
According to the Labour Code (Act I of 2012), the employer and the worker may agree on a shorter daily working time (Labour Code Art. 92(5)), establishing a part-time employment contract, or they can modify an already existing full-time employment contract to a part-time one if both wish to do so. The Labour Code does not contain further detailed rules on part-time work. The general employment rules apply for part-time work along with the principle of pro rata temporis, especially in respect of worker benefits offered directly or indirectly, in cash or in kind. A special regulation applies to workers with children under 4 years or 6 years in the case of families with 3 or more children. In this case, the employer has no right to refuse modifying the employment contract for part-time work (for reduced daily hours as half of the normal working day) if requested by the worker (Labour Code Art. 61 Sec 3 as modified by 2019/126 Art 81).
In Hungary, the level of wages is very low on average, and consequently part-time workers' earnings are even worse. Often family income is complemented by the women employed on a part-time basis. The state supports child-rearing, together with the employment of women on a part-time basis. Therefore, the proportion of female part-time workers is higher than the proportion of male part-time workers. As the table below shows, in the last nine years part-time work has decreased for all categories, and the percentage of part-time workers is significantly below EU27 averages.
Persons employed part-time in Hungary and EU27 (% of total employment)
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
|
Total (EU27) |
18.2 |
18.1 |
18 |
17.8 |
17.8 |
16.6 |
|
Total (Hungary) |
5.7 |
4.7 |
4.3 |
4.2 |
4.3 |
4.8 |
|
Women (EU27) |
30.2 |
30 |
29.8 |
29.5 |
29.4 |
27.6 |
|
Women (Hungary) |
7.6 |
6.7 |
6.2 |
6.2 |
6.7 |
7.2 |
|
Men (EU27) |
8 |
7.9 |
7.9 |
7.7 |
7.8 |
7.2 |
|
Men (Hungary) |
4 |
3.1 |
2.6 |
2.5 |
2.4 |
2.8 |
Source: Eurostat Labour Force Survey [lfsi_pt_a] – Persons employed part-time (20to 64 years of age) – total and by sex.
Involuntary part-time
Involuntary part-time workers can be defined as those working part time because they could not find a full-time job.
Persons employed in involuntary part-time in Hungary and EU27 (% of total part-time employment)
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
|
Total (EU27) |
32.3 |
31 |
29.7 |
28 |
26.5 |
25 |
|
Total (Hungary) |
36.8 |
30 |
26.9 |
23 |
20.4 |
19 |
|
Women (EU27) |
28.8 |
27.7 |
26.4 |
25.2 |
23.9 |
22.5 |
|
Women (Hungary) |
32.7 |
27.8 |
24.3 |
19.6 |
18 |
15.9 |
|
Men (EU27) |
43.6 |
41.8 |
40.4 |
37.2 |
34.9 |
33.1 |
|
Men (Hungary) |
43.7 |
34 |
31.9 |
30.2 |
25.9 |
25.3 |
Source: Eurostat Labour Force Survey [lfsa_eppgai]- involuntary part-time employment as a percentage of the total part-time employment, by sex and age (20to 64 years of age)
Night work
Night work is defined by the Labour Code (Act I of 2012), Art. 89: ‘Night work’ means work carried out between 22:00 and 6:00.
Shift work, Seasonal work
Shift work and seasonal work are defined by the Labour Code (Act I of 2012), Art. 90 and Art. 141:
The method of organising the employer’s work is shift work, if its duration reaches eighty hours in a week (90b); seasonal work if regardless of worktime management considerations it is tied to a certain time or period of the year (90c).
(1) If the beginning of the scheduled daily working time of employees changes frequently, for work performed between 18:00 and 6:00 hours, a 30% wage supplement (special payment for shift work) shall be paid.
(2) For the purposes described in Art. 141(1), changes shall be considered frequent if – on a monthly basis – the beginning of the scheduled daily working time differs for at least one-third of all working days, and if the earliest and the latest start time are at least four hours apart.
Weekend work
Weekend work is defined in Art. 101 as follows:
(1) Work on Sundays, scheduled within the framework of regular working time:
a) if the employer generally operates on Sundays by the nature of its business, or in jobs normally performed on Sundays; b) in seasonal work; c) if working in continuous shifts; d) for workers working in shifts; e) in stand-by jobs; f) for part-time workers working Saturdays and Sundays only; g) in connection with the provision of basic public services or transfrontier services, where it is necessary to work on that day owing to the nature of the service; h) in the case of work performed abroad; and i) at employers engaged in commercial activities covered by the Trade Act, and at providers of services auxiliary to commercial activities and providers of tourist services of a commercial nature.
As regards Art. 101(1)a in defining what constitutes the nature of business that requires Sunday work, the provisions of Art 102(3) shall be applied.
Public holidays
Public holidays are (Art. 102 (1)): 1 January, 15 March, Good Friday, Easter Monday, 1 May, Whit Monday, 20 August, 23 October, 1 November and 25-26 December.
(2) Regular working time may be scheduled for public holidays in the cases defined in a)-c), g)-h) of Art 101(1).
(3) An employer shall be considered to operate on public holidays by the nature of its business or a specific job shall be approved to operate or to be carried out on public holidays:
a) if the service provided is required on that particular day by way of local tradition or commonly accepted social custom directly connected to the public holiday; or
b) if provided in the interest of the prevention or mitigation of any imminent danger of accident, natural disaster or serious damage or of any danger to health, the environment or property.
Compensation for work on Sundays: (1) Employees working on Sundays are entitled to a 50% wage supplement (Sunday premium) (Art. 140.)
a) if the employee can be ordered to work in regular working time only under the conditions referred to in d), e) or i) of Art. 101(1), and b) for overtime work: for the employees referred to in a) of Art. 101(1), or if the employee cannot be ordered to work in regular working time .under Art. 101. (1).
(2) Employees required to work on public holidays are entitled to a 100% wage supplement.
Rest and breaks
Rest and breaks are defined by the Labour Code (Act I of 2012), Art. 103 and 104:
(1) If the scheduled daily working time or the duration of overtime work performed under Art. 107
a) exceeds six hours, 20 minutes of break-time shall be provided;
b) exceeds nine hours, and additional 25 minutes of break-time shall be provided.
(2) The duration of overtime work performed under Art. 107 a) shall be included in the scheduled daily working time.
(3) The break-time provided to employees by agreement of the parties or in the collective agreement may not exceed 60 minutes.
(4) During the break-time work must be interrupted.
(5) The break-time shall be provided after not less than three and before not more than six hours of work.
(6) The employer shall be entitled to schedule break-times in several lots. In this case derogation from Art. 103 (5) is allowed, however, the duration of the break provided within the timeframe referred to there must be at least 20 minutes.
Daily rest period
(1) At least 11 hours of uninterrupted rest periods shall be provided after the conclusion of daily work and before the beginning of the next day’s work.
(2) The daily rest period shall be at least eight hours for employees working:
a) split shifts; b) continuous shifts; c) multiple shifts; or d) in seasonal jobs.
Working time flexibility
In the Hungarian context, it is worth making a distinction between flexibility in terms of the length of working time and flexibility in the organisation of working time.
Regarding the flexibility in the length of working time, the Labour Code (Act 1 of 2012) provides detailed and fairly high maximum limits (daily, weekly hours, overtime), allowing derogation (by collective bargaining or individual contracts) to the benefit of workers only. Flexibility towards reduced hours has also its legislative framework.
As regards flexibility in the organisation of working time, the Labour Code provides discretional right to employers. Employers decide on the actual work schedule (Labour Code Art. 96 (1)). While employers have to observe the statutory rules on the various elements of working time, they can schedule actual working hours within a broad framework, especially when a working time frame or longer settlement period (as described earlier) is applied.
The employer may transfer the right to set a work schedule to the worker. In that case the worker fully determines his/her personal working schedule (Labour Code Art. 96 Sec 2).
Flexible working time schedules, when workers have the opportunity to fix the start and end of a working day, are not legislated for by the Labour Code but left to collective agreements and individual contracts. Workers do not have a legal right to flexitime arrangements, staggered hours, working time banking or a compressed work week, but they can agree on any of these options with their employer. Collective agreements can also cater for such requests.
Health and well-being
Health and well-being
Maintaining health and well-being should be a high priority for workers and employers alike. Health is an asset closely associated with a person’s quality of life and longevity, as well as their ability to work. A healthy economy depends on a healthy workforce: organisations can experience loss of productivity through the ill-health of their workers. This section looks into psychosocial risks and health and safety in Hungary.
Health and safety at work
The Fundamental Law (2011) states that besides the right to physical and mental health ‘every employee has the right to working conditions that respect their health, safety and dignity’. It is enforced – among other things – by organising occupational safety and health care.
Council Directive 89/391/EEC of 12 June 1989 forms the basis of the highest level national occupational safety and health legal regulation, the Act 1993/93 (Act on Occupational Safety and Health – munkavédelmi törvény). It contains a regulation compatible with the Framework Directive. EU harmonised standards are effective in Hungary, although many have not been translated into Hungarian.
Besides occupational safety requirements, the OSH Act defines the system of legal regulation, organisation, institutional regulations concerning occupational health care requirements and the tasks thereof to be executed by the employers. With regard to occupational health care the Act 1997/154 Act (Act on health care – Egészségügyi Törvény) lays down the medical professional goals and tasks of occupational health care. According to both acts, occupational health care embraces the professional fields of work hygiene and occupational medicine. Implementing decrees accompany the acts, with reference to relevant European directives.
Principles of the Act on OSH:
- the objective responsibility of the employer to realise the requirements of safe working activities that do not endanger health,
- OSH requirements defined in a tripartite way,
- the obligation of co-operation of interested parties,
- the employer’s freedom of choice – within the limitations of legal regulations and standards,
- the irreversibility of relevant costs of the employer to the employees.
It is the duty of the employer to establish a unified and comprehensive prevention strategy. The employer must have a risk assessment so that the employer can strive to tackle risks or to eliminate them at the source. This includes replacing dangerous items with harmless or less dangerous ones and the priority of collective technical protection over personal protection. It is the duty of the employer to prepare the proper documentation and secure the occupational safety and health education of the employees.
The law is effective in Hungary for every organised working activity, independent of its institutional nature or property form. Furthermore, it extends to persons within the reach of work activities.
The employer shall not give financial or other compensation for hazardous work, but provide the requirements of safe working activities that do not endanger health.
The law defines the following:
- the requirements regarding the installation of workplaces
- the principles of OSH set-up (putting into operation – from OSH perspectives)
- the material and human resource preconditions of activities at work
- the requirements concerning work processes, technologies and materials
The employer is obliged to employ person(s) or utilise services with the required vocational qualifications while ensuring the adequate conditions to perform the company’s task of ensuring safe working activities that do not endanger health.
Other important legal acts:
- Act 93/1993 on Occupational Safety and Health and its implementation decree
- Act 154/1997 on Health Care
- Act 1/2012 on the Labour Code
- Act 48/1993 on Mining
- Act 25/2000 on Chemical Safety
The 2016 amendment of the Act on Occupational Safety and Health stipulates that workers’ health and safety representatives shall be elected in all workplaces with more than 20 employees (compared with the previous threshold of 50).
Generally, in Hungary, reporting on workplace accidents and their consequences and the statistical data gathered on this subject is often considered not fully reliable (especially for micro and small companies).
Accidents at work, with four days’ absence or more – working days lost
|
2014 |
2015 |
2016 |
2017 |
2018 |
|
|
All accidents |
15,918 |
17,013 |
22,429 |
20,858 |
19,580 |
|
Percent change on previous year |
3.4 |
6.9 |
31.8 |
-7,0 |
-6,1 |
|
Per 1,000 employees (LFS, 15-64) |
4.4 |
4.6 |
5.8 |
5.3 |
4.9 |
Source: Eurostat, [hsw_mi01] and [lfsa_eegaed]
Since 2014 and the beginning of economic recovery following the 2008–2009 economic crisis, there was a resurgence of workplace accidents.
During the recovery period, many new enterprises have started up. New enterprises often consider OSH to be a low priority, striving exclusively for economic results, while newly employed workers also need time to learn and comply with OSH regulations.
It is important to note that when inspectors find violations of OSH regulations, they first give a warning and do not issue fines. This has led to a loosening of rules and their observance, especially for micro and small enterprises.
Psychosocial risks
In Hungary, the mapping of psychosocial risk factors is regulated by legislation.
Workplace stress is addressed by Act 1993/93 on Labour Safety, consolidated with MüM Decree 5/1993 (26 Dec) issued by the Ministry of Labour, and its amendment (on 1 January 2008). This legislation makes it clear that the employer has the duty to assess and reduce psychosocial risks. The Act defines the concept of psychosocial risk and its consequences (stress, workplace accidents, psychosomatic illnesses).
Act 1993/93 provides for the reduction of high stress risks, and safety inspections to monitor and prevent stress. The relevant articles are:
- Art. 54 (1) d): Duties of the employer regarding avoidance of stress, effects of work related psychosocial risks;
- Art. 87 1/H: Interpretative provisions: Psychosocial risks;
- Art. 87 1/D: Occupational illnesses.
Act 2011/191, Art. 175 (1) amends Act 1993/93 Art 54 (3) on risk assessment. The employer is now obliged to do a risk assessment at least every three years.
To facilitate better management and reduction of psychosocial risks, evidence from studies, informational literature and promotional materials are published on the website of the inspection agency, the National Labour Office – Labour and OSH Inspectorate (NMI-MMH) based:
Skills, learning and employability
Skills, learning and employability
Skills are the passport to employment; the better skilled an individual, the more employable they are. Good skills also tend to secure better-quality jobs and better earnings. This section briefly summarises the Hungarian system for ensuring skills and employability and looks into the extent of training.
National system for ensuring skills and employability
The place and role of public institutions responsible for skills identification and development has been much debated in recent years, in relation to the need to increase employability in the workforce and better serve the needs of the economy. In the 2010–2012 period, the adequate response seemed to be an overall integration of labour market institutions, VET institutions and labour and OHS institutions to achieve cooperation and synergy. The National Labour Office (Nemzeti Munkaügyi Hivatal) was thus set up, merging all these specialised institutions, including the National Institute of Vocational and Adult Education ( Nemzeti Szakképzési és Felnőttképzési Intézet, NSZFI).
In the meantime each of these policy areas has undergone profound reconsideration, and new legal frameworks have been developed leading to structural change. At the end of 2014, the Government decided to abolish NMH to better serve the demands of job seekers and employers. As of 1 January 2015, vocational training and adult education is the responsibility of the new background institution, the National Office for Vocational and Adult Training (Nemzeti Szakképzési és Felnőttképzési Hivatal), overseen by the Ministry for Innovation and Technology (Innovációs és Technológiai Minisztérium, ITM).
All state-recognised vocational qualifications awarded within or outside the school system are defined in the National Qualification Register ( Országos Képzési Jegyzék, OKJ).
Under government decree 2019/1168, the Ministry for Information and Technology’s proposals for vocational education reform were launched. The reform implements Strategy Vocational Training 4.0, which is based on the multi-fanged goals of providing career paths in technical vocations (including a state-subsidised 5-year vocational school system in technical subjects), providing modern infrastructure (promoting dual training schemes and digital content) and improving the training of educators (making teacher training for technical experts more flexible).
Non-governmental organisations, such as the Hungarian Chamber of Commerce and Industry (Magyar Kereskedelmi és Iparkamara, MKIK) and the Hungarian Chamber of Agriculture (Magyar Agrárkamara, MA), play a decisive role in the development of professional and examination requirements (szakmai és vizsgakövetelmények, SZVK) of OKJ qualifications, as well as in VET policy in general. The number of state-sponsored OKJ qualifications was significantly reduced in 2021. Social partners can express their views within the National Vocational and Adult Training Council ( Nemzeti Szakképzési és Felnőttképzési Tanács, NSZFT), but this consultative body has a limited role.
Training
For some years, a complex restructuring of the whole education system has been under way involving all sectors – general/public education, vocational education and training and higher education. The two profound changes are:
- since 1 January 2013 vocational schools are maintained and governed centrally by the state;
- the external evaluation / inspection system has been re-introduced in the education sector after almost three decades of absence.
Under government decree 2019/1168, the Ministry for Information and Technology’s proposals for vocational education reform were launched. The reform implements Strategy Vocational Training 4.0, which is based on the multi-fanged goals of providing career paths in technical vocations (including a state-subsidised 5-year vocational school system in technical subjects), providing modern infrastructure (promoting dual training schemes and digital content) and improving the training of educators (making teacher training for technical experts more flexible).
The National Institute of Vocational and Adult Education ( Nemzeti Szakképzési és Felnőttképzési Intézet, NSZFI), was the responsible national authority for development and research activities in vocational education and training. As indicated above, its organisational status has changed over the years, from relative independence as a government background institution, through becoming a section of NMH, to its regained background institutional status as the newly established NSZFH – National Office of Vocational and Adult Education – with increased scope and power from 1 January 2015.
In Hungary, VET is governed by Act 2011/187 on Vocational education and training, while adult training is regulated by Act 2013/77 on Adult training. From July 2018, Sectoral Skills Councils ( Ágazati Készségtanács - ÁKT) are intended to create harmony between skills development and labour-market needs. The Chamber of Commerce and Industry coordinates the work of the ÁKTs.
Survey data show that the smaller the company, the less workers receive paid time off for training. Small companies are unlikely to be able to afford to train their workers during paid time off.
Work organisation
Work organisation
Work organisation underpins economic and business development and has important consequences for productivity, innovation and working conditions. Eurofound research finds that some types of work organisation are associated with a better quality of work and employment. Therefore, developing or introducing different forms of work organisation are of particular interest because of the expected effects on productivity, efficiency and competitiveness of companies, as well as on workers’ working conditions. Ongoing research by Eurofound, based on EurWORK, the European Working Conditions Survey and the European Company Survey, monitors developments in work organisation.
For more detailed information on work organisation, please consult:
- Topic: Work organisation
- Survey: European Working Conditions Survey (EWCS) 2015
- Survey: European Company Survey (ECS) 2019
For Hungary, the the European Company Survey (ECS) 2013 shows that between 2010 and 2013 32.8% of establishments with 10 or more employees reported changes in the use of technology, 24.4% introduced changes in ways to coordinate and allocate the work to workers and 18.4% saw changes in their working time arrangements. No major relevant surveys of studies have been carried out in recent years in Hungary.
Equality and non-discrimination at work
Equality and non-discrimination at work
Act 2003/125 on Equal Treatment and Promotion of Equal Opportunities is the legal basis for ensuring equality and non-discrimination at work.
The Equal Treatment Authority (Egyenlő Bánásmód Hatóság, EBH) was until 1 January 2021 the body that dealt with such issues, from that time onwards, according to Act 2020/127, the ombudsman for basic rights will take over these responsibilities.
Equal pay and gender pay gap
Act I of 2012 on the Labour Code is the legal basis of this subject. The principle of equal treatment states:
In connection with employment relations such as remuneration of work, the principle of equal treatment must be strictly observed. Remedying the consequences of any breach of this requirement may not result in any violation of or harm to the rights of other workers. The equal value of work for the purposes of the principle of equal treatment shall be determined based on the nature of the work performed, its quality and quantity, working conditions, the required vocational training, physical or intellectual efforts expended, experience, responsibilities and labour market conditions.
According to survey data, the trend is positive: while the wage gap was around 20% in mid-1990s, it has decreased to 10–15% after 2002. This average however conceals much wider gender pay gaps when the figures are broken down by age of workers, depending on which sector is concerned, and whether a company is private or state-owned.
The latest data on gender wage gap published by OECD in 2016 puts the gap in Hungary at 9.4%.
No significant legislative support measures are in place in Hungary to facilitate the implementation of the relevant Act.
It should also be noted that the new constitution, the Fundamental Law of Hungary (25 April 2011) does not include specific provisions on equal pay. Article XV stipulates in general that everyone is equal before the law, and that fundamental rights are guaranteed to everyone without discrimination (listing also the most common grounds of discrimination, including sex). When it comes to the supporting measures, the Article only refers to the promotion of equality of opportunity and social inclusion as well as the protection of families, children, women, the elderly and persons living with disabilities.
Quota regulations
Hungarian legislation, for primarily historic reasons, generally tends to avoid using quotas.
For supervisory boards no quotas apply. In the biggest Hungarian companies, the proportion of women on the supervisory boards is 5.3%.
Out of the various disadvantaged groups of workers, Hungary applies a sort of indirect quota system for workers living with disability. As of 1 January 2010, a rehabilitation contribution is payable by employers who have more than 25 workers with a ratio of disabled workers lower than 5%. Employers can choose whether they employ people with disabilities or contribute to the financial resources used by the government to support their employment and employability (Act 2011/191) on the Allowances of people with disabilities, Art. 23-24).
Working life links
Working life links
Employers
- MGYOSZ - Confederation of Hungarian Employers and Industrialists (Munkaadók és Gyáriparosok Országos Szövetsége)
- OKISZ - Hungarian Industrial Association (Magyar Iparszövetség)
- VOSZ - National Association of Entrepreneurs and Employers (Vállalkozók és Munkáltatók Országos Szövetsége)
- STRATOSZ - National Association of Strategic and Public Utility Companies (Stratégiai és Közszolgáltató Társaságok Országos Szövetsége)
- MOSZ - National Federation of Agricultural Cooperatives and Producers (Mezőgazdasági Szövetkezők és Termelők Országos Szövetsége)
- ÁFEOSZ - National Federation of Consumer Co-operatives (Általános Fogyasztási Szövetkezetek Országos Szövetsége)
- IPOSZ - National Federation of Craftsmen Boards (Ipartestületek Országos Szövetsége)
- KISOSZ - National Federation of Traders and Caterers (Kereskedők és Vendéglátók Országos Érdekképviseleti Szövetsége)
- NIT -National Youth Council ( Nemzeti Ifjúsági Tanács)
Trade Unions
- ÉSZT - Confederation of Unions of Professionals (Értelmiségi Szakszervezeti Tömörülés)
- LIGA - Democratic League of Independent Trade Unions (Független Szakszervezetek Demokratikus Ligája)
- MOSZ - National Federation of Workers’ Councils (Munkástanácsok Országos Szövetsége)
- MASZSZ – Hungarian Trade Union Confederation (Magyar Szakszervezeti Szövetség)
- SZEF - Trade Unions’ Cooperation Forum (Szakszervezetek Együttműködési Fóruma)
Government
- AB - Constitutional Court (Alkotmánybíróság)
- EMMI - Ministry of Human Capacities (Emberi Erőforrások Minisztériuma)
- PM – Ministry of Finance (Pénzügyinisztérium)
- Ministry for Innovation and Technology (Innovációs és Technológiai Minisztérium)
- NOVETAL - National Office of Vocational Education and Training and Adult Learning (Nemzeti Szakképzési és Felnőttképzési Hivatal, NSZFH)
Bibliography
Bibliography
Berke, G., Kiss, G., Bankó, Z., Kajtár, E., Kovács, E. (2014), Kommentár a munka törvénykönyvéhez, revised edition, Wolters Kluwer, Budapest.
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