• Insights

Key labour law changes in 2020 in Hungary

Written by
CLV Partners, one of Hungary's best specialist firms.
On 1 January 2020, important changes in labour law entered into force in Hungary. This article explains them.

Amendments to the Labour Code

The scope of part-time work has been extended for employees with children, so that upon an employee’s request, the employer is required to amend his or her employment to part-time (half of the standard daily working time) until the child reaches the age of four, or for employees raising three or more children, until the youngest child reaches the age of six.

‘Guardian parents’ (court or agency appointed guardians caring for children before an adoption or permanent foster placement) will also be eligible for maternity leave, and an employee is entitled to three years’ unpaid leave from the beginning of the placement of the child, or to six months if the child is older than three.

Another change to the Labour Code means non-compete agreement must be in writing; this was already a widely applied practice in the field of labour law.

Increase in the minimum wage and guaranteed wage minimum

According to Government Decree no. 367/2019. (XII.30.) on the minimum wage and guaranteed wage minimum, the guaranteed wage minimum increases by 8%: from 1 January 2020 it is approximately EUR 635. The minimum wage also increases by 8% compared to 2019 from 1 January 2020, to approximately EUR 486.

Changes to tax and contribution rules

From 1 January 2020, grandparent’s childcare benefit was introduced and from 1 July 2020, the minimum contribution base will be determined based on the minimum wage and pensioners will not pay social security contributions regardless of their form of employment.

New provisions in the Act of labour protection

The rules of Act no. XCIII of 1993 on labour protection introduced a reporting obligation for employers regarding employees’ occupational exposure and the record of exposure to carcinogenic or mutagenic substances, which forms part of the reporting and investigation of occupational accidents and diseases. Moreover new provisions have clarified the concepts of increased exposure, personal protective equipment and hazardous material and a new term, ‘hazardous compound’ was also introduced.