Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Hungary (Ratification: 1932)

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2019, published 109th ILC session (2021)

The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Article 3(2) of the Convention. Minimum wage fixing machinery. Consultations with the social partners. The Committee notes that following the recent adoption of the new Labour Code – aiming at introducing structural reforms to the prevailing industrial relations system and promoting flexible employment relations – the National Economic and Social Council (NGTT) has replaced the tripartite National Conciliation Council (OÉT). The Committee understands that the Government’s intention is to modify the minimum wage fixing process and alter the previous intense participation of social partners in this process. More concretely, the Committee understands that the Government is no longer obliged to reach agreement with employers’ and workers’ organizations before setting the national minimum wage. The NGTT, which includes representatives of employers, workers, chambers of commerce and churches, may draft and address proposals to the Government but does not have decision-making power. In this connection, the Committee notes the comments made by six trade union confederations in September 2011 according to which the new labour legislation does not involve the social partners in the determination of the minimum wage. The workers’ organizations also allege that the social partners were not consulted at any stage of the labour law reform. While noting the Government’s explanations regarding the new rules on determination of the national minimum wage based on consultations with – as opposed to the consent of – the social partners, the Committee wishes to recall the importance of continued constructive dialogue and the true meaning of consultation as being different from mere “information” and from “co-determination”. In this regard, the Committee wishes to refer to its 1992 General Survey on minimum wages, in which it pointed out that “consultation” implies that employers and workers must be able to have a real influence on the decisions to be taken (paragraph 195), and also that consultation of the social partners needs to be useful and effective, that is to say that the social partners are genuinely given an opportunity to express their views, in full knowledge of the facts, and that their views are taken into consideration at the appropriate time (paragraph 425). The Committee accordingly requests the Government to provide more ample information on any further developments regarding the revision of the minimum wage system, particularly as regards the full consultation and direct participation of employers’ and workers’ organizations at all stages of the establishment, operation and modification of the minimum wage fixing machinery. Please also provide more detailed particulars on the establishment, composition and mandate of the NGTT.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

Repetition

Article 3(2)(2) of the Convention. Equitable representation of the employers and workers concerned. The Committee notes the Government’s explanations concerning the re-establishment of the tripartite National Conciliation Council (OÉT) to replace the National Labour Council (NLC) as the main body for tripartite negotiations and consultation. The Committee notes, in particular, that among its numerous specialized committees, the OÉT has a committee on wages and collective agreements, and that in the period 2002–04 wages together with employment and economic policy were the leading issues on the agenda for consultations.

As regards the equal representation of the employers’ and workers’ organizations concerned, the Committee notes that, according to the Government’s report, the negotiating group of employers consists of nine representatives appointed by nine different interest representation bodies while the negotiating group of employees appears to consist of only six representatives. The Committee therefore requests the Government to further clarify how it is ensured that the employers and workers concerned are associated in the operation of the minimum wage-fixing machinery in equal numbers and on equal terms, as required under this Article of the Convention. The Committee would also appreciate receiving a copy of the agreement of 26 July 2002 on the renewal of the conciliation of interests, and of any other legal instrument regulating the operation of the OÉT.

Article 4(1). Dissemination of information on minimum wage rates. The Committee notes that the statutory minimum wage is published in the Official Gazette (Magyar Közlöny) and also that information on minimum pay rates is available at web sites of government institutions, such as the Ministry of Social and Labour Affairs or the State Employment Service. In this connection, the Committee wishes to refer to paragraphs 355–361 of its 1992 General Survey on minimum wages in which it noted that for practical reasons the publication of minimum wages in the Official Gazette is not by itself sufficient to ensure that the employers and workers concerned are made aware of the rates in force and that other arrangements for giving publicity to these rates might need to be considered, for instance the posting of notices in appropriate locations at the workplace, or the distribution of copies or extracts from the applicable standards, account being taken especially of the needs of illiterate persons or workers communicating in different languages or dialects. The Committee trusts that should the need arise the Government will consider additional measures for effectively keeping the workers informed of the minimum wage rates in force in a broadly accessible and easily understandable manner.

Article 5 and Part V of the report form. Practical application. The Committee notes that by Government Decree No. 316/2005 (XII.25) the statutory minimum wage was set at HUF65,500 per month, or HUF377 per hour, as from 1 January 2007, to be increased to HUF69,000 per month, or HUF397 per hour, as from 1 January 2008 (amounts further increased depending on secondary level education and vocational qualification). The Committee would be grateful if the Government would continue to provide up to date information on the effect given to the Convention in practice, including for instance statistical information on the number of workers remunerated at the minimum wage rate, the evolution of the national minimum wage in recent years as compared to the evolution of economic indicators such as the inflation rate over the same period, relevant extracts from labour inspection reports, copies of official documents such as activity reports of the National Conciliation Council, etc.

Finally, the Committee wishes to draw the Government’s attention to the conclusions of the ILO Governing Body on the continued relevance of the Convention based on the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). In fact, the Governing Body has decided that Conventions Nos 26 and 99 are among those instruments which may no longer be fully up to date but remain relevant in certain respects. The Committee therefore suggests that the Government should consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which marks certain advances compared to older instruments on minimum wage fixing, for instance, as regards its broader scope of application, the requirement for a comprehensive minimum wage system, and the enumeration of the criteria for the determination of minimum wage levels. The Committee requests the Government to keep the Office informed of any decision taken or envisaged in this regard.

Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes the detailed information contained in the Government’s report and the attached documentation.

Article 1, paragraph 1, of the Convention. Differentiated minimum pay rates for specific categories of workers. The Committee notes with interest the Government’s indication that, following the latest amendment of the Labour Code by Act CLIV of 2005, section 144(6), which authorized the Minister of Labour to fix – in the interest of promoting employment – minimum wages lower than the statutory minimum wage for specific groups such as young workers and disabled persons, has now been repealed. The Committee requests the Government to keep it informed of any further developments relating to the possible determination of differentiated minimum wage levels – for reasons such as the promotion of youth employment, or the need to ensure equality of opportunity and treatment for incapacitated or older workers – and the resulting conflict of such measures with the general principle of equal remuneration for work of equal value.

Article 3, paragraph 2(2). Equitable representation of the employers and workers concerned. The Committee notes the Government’s explanations concerning the re-establishment of the tripartite National Conciliation Council (OÉT) to replace the National Labour Council (NLC) as the main body for tripartite negotiations and consultation. The Committee notes, in particular, that among its numerous specialized committees, the OÉT has a committee on wages and collective agreements, and that in the period 2002–04 wages together with employment and economic policy were the leading issues on the agenda for consultations.

As regards the equal representation of the employers’ and workers’ organizations concerned, the Committee notes that, according to the Government’s report, the negotiating group of employers consists of nine representatives appointed by nine different interest representation bodies while the negotiating group of employees appears to consist of only six representatives. The Committee therefore requests the Government to further clarify how it is ensured that the employers and workers concerned are associated in the operation of the minimum wage-fixing machinery in equal numbers and on equal terms, as required under this Article of the Convention. The Committee would also appreciate receiving a copy of the agreement of 26 July 2002 on the renewal of the conciliation of interests, and of any other legal instrument regulating the operation of the OÉT.

Article 4, paragraph 1. Dissemination of information on minimum wage rates. The Committee notes that the statutory minimum wage is published in the Official Gazette (Magyar Közlöny) and also that information on minimum pay rates is available at web sites of government institutions, such as the Ministry of Social and Labour Affairs or the State Employment Service. In this connection, the Committee wishes to refer to paragraphs 355–361 of its 1992 General Survey on minimum wages in which it noted that for practical reasons the publication of minimum wages in the Official Gazette is not by itself sufficient to ensure that the employers and workers concerned are made aware of the rates in force and that other arrangements for giving publicity to these rates might need to be considered, for instance the posting of notices in appropriate locations at the workplace, or the distribution of copies or extracts from the applicable standards, account being taken especially of the needs of illiterate persons or workers communicating in different languages or dialects. The Committee trusts that should the need arise the Government will consider additional measures for effectively keeping the workers informed of the minimum wage rates in force in a broadly accessible and easily understandable manner.

Article 5 and Part V of the report form. The Committee notes with interest the information supplied in the Government’s report concerning the number and type of breaches of minimum wage provisions in the period 2004–05, the rate of the breach of minimum wage rules as compared to the overall number of labour law violations observed in the same period, and the sectors which are most strictly inspected for compliance with minimum wage provisions. The Committee also notes that by Government Decree No. 316/2005 (XII.25) the statutory minimum wage was set at 65,500 HUF per month, or 377 HUF per hour, as from 1 January 2007, to be increased to 69,000 HUF per month, or 397 HUF per hour, as from 1 January 2008 (amounts further increased depending on secondary level education and vocational qualification). The Committee would be grateful if the Government would continue to provide up to date information on the effect given to the Convention in practice, including for instance statistical information on the number of workers remunerated at the minimum wage rate, the evolution of the national minimum wage in recent years as compared to the evolution of economic indicators such as the inflation rate over the same period, relevant extracts from labour inspection reports, copies of official documents such as activity reports of the National Conciliation Council, etc.

Finally, the Committee wishes to draw the Government’s attention to the conclusions of the ILO Governing Body on the continued relevance of the Convention based on the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). In fact, the Governing Body has decided that Conventions Nos 26 and 99 are among those instruments which may no longer be fully up to date but remain relevant in certain respects. The Committee therefore suggests that the Government should consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which marks certain advances compared to older instruments on minimum wage fixing, for instance, as regards its broader scope of application, the requirement for a comprehensive minimum wage system, and the enumeration of the criteria for the determination of minimum wage levels. The Committee requests the Government to keep the Office informed of any decision taken or envisaged in this regard.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the information supplied by the Government in reply to the Committee’s previous comments.

Article 1, paragraph 1, of the Convention. The Committee recalls its previous comments in which it requested the Government to clarify whether lower minimum wages are applied to certain employees’ groups, such as young workers under the age of 18, disabled and part-time employees, by virtue of section 144(6) of the Labour Code which authorizes a departure from the mandatory minimum wage if this appears necessary in the interest of employment. In its reply, the Government has stated that the above provision was drafted as an expedient means of promoting employment at a time of extremely high unemployment in the country, but that the Minister of Labour has not so far made use of its enabling provisions. In this regard, the Committee would be grateful if the Government could indicate the measures that have been taken or are envisaged to re-examine the question of fixing lower minimum wage rates for groups of workers on account of their age or disabilities, for example, by amending the national legislation in this respect, or alternatively taking all necessary steps to ensure compliance with the overriding principle of equal remuneration for work of equal value and strict adherence to objective criteria such as the quantity and quality of the work performed.

Article 3, paragraph 2(2). The Committee notes the Government’s indication that the National Interest Reconciliation Council ceased to exist in 1999 and has since been replaced by the National Labour Council (NLC), which is also a consultative body with tripartite composition. The Committee would appreciate if the Government could provide additional information on the powers and functions of the Council, especially with respect to the process of consultations and the equal representation of the employers’ and workers’ organizations concerned.

Article 4, paragraph 1. The Committee notes the Government’s indication that workers are informed of the minimum wage rates in force through various sources, such as technical publications regarding wages or the web site of the Ministry of Labour, Social Affairs and Family, but also by means of notices posted at the workplace. In this connection, the Committee would be grateful if the Government could specify whether the posting of notices containing information on applicable minimum wage rates is prescribed by national laws or regulations and, if so, transmit a copy of the relevant text(s).

Article 5 and Part V of the report form. The Committee notes with interest the information supplied in the Government’s report concerning the proportion of workers whose basic salary was equal to the minimum wage in the period 1997-2001, the evolution of minimum wage rates in the period 1998-2002, as well as the indication that the national minimum wage is currently set at 50,000 HUF per month or 288 HUF per hour. It also notes the statistical data regarding the number of inspection visits, violations reported and fines imposed during the period 1997-2002 with a view to ensuring compliance with minimum wage legislation. The Committee requests the Government to continue providing all available information on the effect given to the Convention in practice.

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the information supplied in the Government's report.

Article 2 of the Convention. The Committee notes the Government's information about the employment of homeworkers.

The Committee requests the Government to supply information, if any mandatory minimum wage has been fixed for specified categories of workers under section 144(3) of the Labour Code, Act XXII of 1992.

Article 3, paragraph 2(2). The Committee notes that according to its statutes, the National Interest Reconciliation Council is a tripartite body and the Government, the employers and employees have one vote each. It requests the Government to provide a copy of these statutes.

Article 3, paragraph 2(3). The Committee notes the Government's indication that the Minister of Labour has not recently made any provisions under section 144(6) of the Labour Code which permits a departure from the mandatory minimum wage in the interest of employment of certain employees' groups such as young persons under the age of 18, the disabled and part-time employees.

In this respect, the Committee wishes to refer to paragraphs 169 to 181 of its 1992 General Survey on minimum wages. As minimum wage instruments contain no provisions on the fixing of different minimum wage rates on the basis of criteria such as sex, age or disability, the general principles laid down in other instruments have to be observed, and particularly those contained in the Preamble of the Constitution of the ILO which specifically refers to the application of the principle of "equal remuneration for work of equal value". As regards age, paragraph 171 of the above survey specifies that the quantity and quality of work carried out should be the decisive factor in determining the wage paid. Therefore, the Committee considers that, although the minimum wage Conventions do not forbid the determination of lower minimum wage rates for young workers, the measures taken in this respect should incorporate the principle of equal remuneration for work of equal value, and should prescribe criteria based, not on age, but on objective factors, such as the quantity and quality of the work performed.

Article 4. The Committee notes with interest that Act LXXV of 1996 on labour inspection has been issued and its section 3(1)(e) provides that the scope of labour inspection extends to compliance with the legal provisions on wage, including minimum wage. It also notes the various measures that labour inspectors may take in order to combat infringements of labour law.

As regards the procedure for recovery in case of non-observance of the minimum wages, the Committee notes the Government's indication in respect of sections 144(1) and 199 of the Labour Code.

Article 5 of the Convention, in conjunction with point V of the report form. The Committee notes the rise in the amount of the minimum wages in the period 1992 to 1997. It requests the Government to continue supplying general information on the application of the Convention in practice, including: (i) the minimum wage rates in force; (ii) the available data on the number and different categories of workers covered by minimum wage provisions; and (iii) the results of inspections carried out (for example, the number of violations of minimum wage provisions, the penalties imposed, etc.).

Direct Request (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee notes with interest the new Labour Code (Act XXII of 1992) as well as the information supplied in the Government's report, including comments made by the National Confederation of Hungarian Trade Unions. It requests the Government to provide further information on the following points:

Article 2 of the Convention. The Committee notes that section 203(2)(a) of the Code authorizes the Government to enact regulations concerning the employment of outworkers (homeworkers). It requests the Government to indicate whether any regulations made under this provision concern minimum rates of wages for outworkers. The Committee also asks the Government to supply information on any mandatory minimum wage fixed for specified categories of workers under section 144(3);

Article 3, paragraph 2(2). The Committee notes that, in virtue of section 17 of the Code, the Government is "to make decisions regarding the minimum wage in concurrance with the Council of Conciliation". It requests the Government to indicate whether workers and employers are represented in this Council in equal numbers and on equal terms, and to communicate statutory provisions, if any, concerning the establishment and the functioning of this Council;

Article 3, paragraph 2(3). The Committee asks the Government to supply information on any departure from the mandatory minimum wage regarding young workers and the disabled permitted in virtue of section 144(6) of the Code;

Article 4. The Committee notes that the above-mentioned workers' organization points out in its comments that, despite the legislative arrangement, there are numerous cases of payment of wages lower than the prescribed rates, for economic reasons, in such fields as water management. The Committee requests the Government to supply information on measures taken or envisaged to give effect to the provisions of this Article of the Convention, in particular on the system of supervision and sanctions, including the system of inspection, and on the procedure of recovery in the case of non-observance of the minimum wages;

Article 5. The Committee requests the Government to supply information on the results of the application of the minimum wage fixing machinery as required under this Article, including such information as the approximate numbers of workers covered, the minimum rates of wages fixed, and the more important of the other conditions, if any, established relevant to the minimum rates.

Observation (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee notes the comments of the National Confederation of Hungarian Trade Unions on the application of the Convention, enclosed with the Government's report, to the effect that, despite the adoption of new legislation, there are many cases of employers paying wages which are lower than the prescribed rates, for economic reasons, in the water supply, forestry and agricultural sectors.

The Committee has addressed a direct request including comments on this matter to the Government.