Determining an employee’s basic salary is a mandatory requirement of the employment contract. The basic salary may be fixed on an hourly or a monthly basis and should be determined and paid in HUF. (The parties may deviate from the HUF currency only in case of executive employees based in the Hungarian jurisdiction.) The basic salary must be at least the minimum salary the government has set. Salaries must be at least HUF 200,000 (around EUR 490) for full-time employment (40-hour work week) for jobs that do not require any education and HUF 260,000 (around EUR 640) for full-time employment (40-hour work week) for jobs requiring at least a high school graduation certificate. These are the minimum salaries in Hungary.
Salaries must be paid by the 10th day following the month in question. Salaries can be paid in cash or via a bank transfer to an account specified by the employee.
Do employees have to be paid from a local bank account?
The remuneration to which the employee is entitled (which includes the basic salary) may be determined as a salary (1) based on performance or (2) based on combining time and performance. If employees are paid on the time-and-performance basis, they are paid for the time worked. In case of a performance-based salary, the employer must specify the objective performance requirements that must be determined based on a preliminary procedure including measurement and calculation and an assessment of whether 100% of the requirements can be met during normal working hours.
The basic purpose of salary supplements is to reward employees for working in more difficult conditions than usual, in addition to their normal working hours. Supplements are calculated based on the employee’s basic salary per hour: