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

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

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lower than the statutory minimum wage for specific groups such as young workers and disabled persons, has now been repealed.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.