| Hungarian Labour Market |
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| Tuesday,July 15,2008 Posted: 22:03 BJT(03 GMT) |
| From:驻匈经商处 Article type:Redistributed |
Hungary’s labour force of about 4.1 million is highly educated and highly skilled.
About two-thirds of the work force has completed some form of secondary, technical or vocational education. Hungary has great traditions and high standards in many areas including engineering, medicine, economics, and sciences. Foreign employers find Hungarian workers extremely flexible, highly motivated and very efficient. Most of young Hungarians speak English and/or other Western languages.
Employment within Hungary varies regionally: in the North-West temporary shortages of skilled workers occur, particularly in the financial and marketing sectors. East of the Danube unemployment levels are usually higher than the national average, sometimes exceeding 10%.
The basic elements of employment agreements are regulated by the Hungarian Labour Code (Act XXII of 1992), which is broadly similar to employment law in other European Union countries. The Law provides a basis for organized labour negotiations with trade unions or other representatives of employees (e.g., works councils).
The terms of employment are established by a written labour contract, and may be terminated by mutual consent of the parties. The normal daily working time is eight hours; weekly working time is maximum 48 hours with 2-day rest period. Employees cannot be obliged to work on public holidays. Each employee is entitled to a regular vacation every calendar year. The duration of the vacation is 20 days, but the number of vacation days is increased according to the age of the employee.
An employment agreement may not contradict the Labour Code or any collective agreement in force. An employment agreement can provide more benefits for the employee than those required by the Labour Code or a collective agreement.
Social security contributions are mandatory for Hungarian employees, employees not otherwise subject to but wishing to benefit from the Hungarian social security system may still be allowed to contribute. The pension system is now a three pillar system of a mandatory public scheme a private scheme and a voluntary scheme.
Current rate of the employer’s contribution:
– 21% pension insurance
– 8% health insurance
– 1,950 HUF/month health care contribution
– 3% unemployment insurance premium
– 1.5% training contribution
As of January 2008, the minimum gross monthly wage is HUF 69.000 = about 267 €.
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