Hungary: Pay and benefits

Original author: PRK Partners Prague
Updating author: Kinga Zempléni

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Summary

• The payment of wages by an employer in return for work performed by an employee is an essential element of an employment contract. (See General)
• Various rules govern the frequency and form of payment of wages. (See Payment of wages)
• With some exceptions, such as income tax and social security contributions, and wages attached by court order, deductions from wages generally require the employee's consent. (See Deductions)
• Employees must be paid equal remuneration for work of equal value, and pay discrimination is prohibited. (See Equal pay)
• There are two statutory national minimum wage rates, one for employees in skilled jobs and one for employees in unskilled jobs. (See Minimum wages)
• All employees are covered by a statutory pension scheme that forms part of the public social insurance system, while employers may voluntarily provide employees with a private pension fund. (See Pensions)
• Employers must withhold employees' income tax at source, and both employers and employees must pay statutory social insurance contributions. (See Income tax and social security)
• Employees are entitled to 15 days of sick leave per year, during which they receive 70% of their wages from the employer. (See Sick pay)
• Employers may provide employees with benefits in kind. (See Benefits in kind)