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

Equal Remuneration Convention, 1951 (No. 100) - Hungary (Ratification: 1956)

Legislative developments. The Committee notes that the new Labour Code came into force on 1 January 2012 (Act I of 2012). Section 12(1) sets out the general principle that “in connection with employment relationships, such as the remuneration of work, the principle of equal treatment must be strictly observed”. Section 12(3) states that “the equal value of work for purposes of the principle of equal treatment shall be determined based on the nature of the work performed, its quality and quantity, working conditions, the required vocational training, physical or intellectual efforts expended, experience, responsibilities and labour market conditions”. The Committee notes that, despite the reference to “equal value” in section 12(3), it is not clear how sections 12(1) and 12(3) interact, or whether there is a right to equal remuneration for men and women for work of equal value, allowing for the comparison of jobs of an entirely different nature. In addition, it appears that parties can derogate from the rights set out in section 12, as there is no prohibition to derogate, unlike that set out in sections 35 and 50, and section 9 allows for the restrictions of the personal rights of workers in certain circumstances. The Committee therefore asks the Government to indicate the manner in which the right to equal remuneration for men and women for work of equal value is implemented in law and practice. Please also provide information on the scope of application of section 9 of the Labour Code with respect to permitting derogations from the rights set out in section 12.

Gender pay gap. The Committee notes from the statistics provided by the Government that in 2010, women earned on average 15 per cent less than men. The Government also indicates that the labour market is still characterized by horizontal and vertical job segregation between men and women. According to the study “Gender wage gap and segregation in contemporary Hungary” published in April 2011, the reality of wage differentials between men and women is in stark contrast with the average estimation of the gender pay gap (16.2 per cent). The study reveals that although there is no gender wage gap in a large part of the labour market (typically seasonal work, construction, agriculture and transport), this segment of the labour market comprises only low-paying sectors offering no career prospects. The study also shows that the gender wage gap increases with the wage level and that gender segregation is much more pronounced by occupation than by sector (glass ceiling effect). According to the study, there is a marked gender wage gap in the private sector where men earn high wages or the female proportion of the workforce is high, while women employed in the public sector or the non-governmental organizations sector are less affected by wage differentials. The Committee asks the Government to continue to provide information on the evolution of the gender pay gap and its causes. Please also provide statistical information on the earnings of men and women in the public and the private sectors.

The Committee notes that under the EQUAL programme, the Government implemented an “Equal pay for equal work” project (H/005 (HU-06)) which aims at combating sex-based wage discrimination through the creation and operation of an e-Wage barometer. This barometer and the salary checker developed concomitantly constitute a background database allowing for comparative analysis with regard to wages and working conditions and provide a tool for negotiating collective wage agreements and developing gender-sensitive labour market policies with a view to reducing the gender wage gap and to promoting equal opportunities in the labour market. The Committee also notes that the e-Wage barometer Internet platform is integrated into an international network including over 20 countries, allowing for international comparison and benchmarking. The Committee asks the Government to provide information on the implementation of the e-Wage Barometer and the Salary Checker and the impact on the reduction of the gender pay gap.

Equal opportunity plans at the enterprise level. The Committee notes from the study, “Impact of the equal opportunity plan – Summary and recommendations” of 2011, that while 78 to 84 per cent of public institutions have adopted an equal opportunity plan, only 31 per cent of businesses in the private sector comply with their legal obligation. The study further revealed that overall, employers consider equal opportunity plans unnecessary and adopt such plans only to be in good standing with their legal obligation or to increase their chances of being selected in public procurement procedures. Moreover, workers’ awareness with respect to the adoption and implementation of such plans in their workplace is limited. In its conclusions, the study recommends the taking of action to sensitize and to train both employers and workers regarding the Equal Treatment Act and the rights and obligations stemming from it. The Committee asks the Government to provide information on any follow-up action given to the recommendations of the study so as to improve compliance with the legal obligation to adopt equal opportunity plans, including any sanctions imposed by the Equal Treatment Authority pursuant to section 16(5) of the Equal Treatment Act. The Committee also encourages the Government to undertake a review of the existing equal opportunity plans so as to assess how and to what extent the principle of equal remuneration for men and women for work of equal value is applied by such plans.

Promotion of gender equality. The Committee notes that, as part of the National Strategy for the Promotion of the Social Equality of Women and Men 2010–21 (Government Decision No. 1095/2010 (IV.21.1), a two-year action plan was adopted setting out a strategy to, inter alia, establish equal economic independence of men and women and eliminate wage and employment inequalities (Government Decision No. 1004/2010 (I.24.)). Implementing measures include enforcing the principle of “equal wage for equal work” with a view to combating gender wage differentials, to disseminating standard methods for comparing occupations, performance and wages and to addressing horizontal and vertical gender segregation. Further action is to be taken to sensitize workers’ and employers’ organizations to the measures laid down by the National Strategy. The Committee further notes the Government’s statement that the mandate of the Council for Social Equality between Women and Men provided under Government Decision No. 1008/2009 (I.28.) does not extend to the issue of equal remuneration between men and women. The Committee asks the Government to provide information on the implementation of the measures provided under the biannual action plan to promote the principle of equal remuneration, to address gender segregation in the labour market and to narrow the gender pay gap, as well as on the results achieved. The Committee also asks the Government to provide information on the composition and terms of reference of the Council for Social Equality between Women and Men.

Minimum wages. The Committee notes that, pursuant to Government Decree No. 337/2010 (XII.27) on setting the compulsory minimum wage (Minimum Wage), the amount of the monthly minimum wage was 78,000 Hungarian forint (HUF) as from 1 January 2011, and the minimum wage for workers holding jobs that require at least a secondary school qualification or a vocational qualification was HUF94,000 as from 1 January 2011. The Committee also notes the Government’s indication that while women represent 42 per cent of the workforce in the private sector, 46 per cent of them earn the statutory minimum wage. As regards male workers (representing 58 per cent of the workforce), 10.69 per cent of them are paid the minimum wage. As a result, the proportion of workers earning the minimum wage in the private sector is higher for women (7.4 per cent) than for men (6.2 per cent). The Committee further notes that, pursuant to section 153 of the new Labour Code, the amount and scope of the minimum wage shall be determined by the Government following consultations in the National Economic and Social Council and based on the requirements prescribed for specific occupations, the indicators of the national labour market, the status of the national economy, and the unique requirements of certain economic sectors and geographical areas in terms of the workforce. The Committee asks the Government to provide information on how it is ensured in practice that such criteria, including the requirements prescribed for specific occupations and the unique requirements for specific economic sectors and geographical areas, are free from gender bias and that female-dominated occupations are not undervalued in comparison with those undertaken by men who are performing different work which is nevertheless of equal value. The Committee also asks the Government to continue to provide information on the minimum wages and on any impact of the minimum wages on the reduction of the gender pay gap.

Objective job evaluation. The Committee notes that pursuant to section 12(3) of the new Labour Code, “the equal value of work for the purposes of the principle of equal treatment shall be determined based on the nature of the work performed, its quality and quantity, working conditions, the required vocational training, physical or intellectual efforts, experience, responsibilities and labour market conditions”. The Committee also notes the Government’s indication that Government Decision No. 1027/2011 (VI.28.) on the reconciliation of public service careers provides for the adoption of objective job evaluation methods and that the development of such methods is currently under way. Recalling the Government’s acknowledgement that the labour market is still characterized by strong horizontal and vertical gender segregation, the Committee draws the Government’s attention to the necessity of ensuring that work carried out mainly by women is not undervalued and that women receive equal remuneration compared to men carrying out work of equal value. The Committee therefore asks the Government to provide information on the application in practice of section 12(3) of the Labour Code and on any other measures taken to promote the development and use of objective job evaluation methods in both the public and the private sectors, including any action taken to implement Government Decision No. 1027/2011 (VI.28.).

Cooperation between workers’ and employers’ organizations. The Committee notes the Government’s explanation that under Act LXXIV of 2009 on sectoral dialogue committees, such committees are free to include in their collective agreements programmes or projects aimed to promote the principle of equal treatment of men and women in the workplace. Referring to section 41/A(4) of the previous Labour Code, the Government also indicates that the competent minister registers such an agreement upon the request of the social partners, who then are to comply with their reporting obligation, including by indicating whether the agreement contains special provisions with regard to the equal treatment of women and men. However, the social partners are not required to specify the content of such provisions. The Committee also notes the Government’s indication that, according to the statistics compiled, 25 per cent of the collective agreements registered set out specific provisions for women. The Committee further notes that the new Labour Code does not reproduce section 41/A(4) but that the rules governing the extension of such agreements are now provided under the Act on sectoral dialogue committees (section 17(2)). The Committee asks the Government to supply a copy of Act LXXIV of 2009 on sectoral dialogue committees and to provide information, including statistical data, on the implementation of such Act with regard to the promotion and application of the principle of the Convention.

The Government also indicates that section 3(2) of Act LXXIII of 2009 on the National Council for the Reconciliation of Interests (NCRI) provides the institutional framework for consultations between the Government and workers’ and employers’ organizations with regard to labour market strategy and employment policy, including wage policy. The Committee asks the Government to provide information on how the NCRI addresses the principle of equal remuneration between men and women for work of equal value. Please also supply a copy of Act LXXIII of 2009 on the NCRI.

Enforcement. The Committee notes the Government’s indication that the Equal Treatment Authority conducted, upon request, inspections of the remuneration systems applied in enterprises and found violations of the principle of equal remuneration in several cases where male and female workers were performing the same or similar jobs (EBH/106/20/2009; EBH/1395/10/2009; EBH/1363/13/2009; EBH/117/2010). According to the Government’s report, the Equal Treatment Authority was confronted in some cases by the reluctance of some employers to cooperate in the investigation proceedings. The Committee further notes that the courts have handed down several decisions concerning the application of the principle of equal remuneration, including the Budapest Metropolitan Court’s ruling of 2010 dismissing an application brought by a construction company against a sanction imposed by the Equal Treatment Authority. With regard to the enforcement of the principle of the Convention by the labour inspectorate, the Committee notes that the number of complaints filed before the labour inspection services is very low. The Committee notes the Government’s explanation that cases are being initiated only upon request, and complainants fall outside the scope of persons eligible for anonymity in proceedings, as provided under section 8/A(2) of the Labour Inspection Act and section 39/A of Act CXL of 2004 on the general rules of administrative proceedings and services. It adds that the absence of protection of complainants and the subsequent fear of reprisals remains a major issue in the application and enforcement of the Convention. The Committee further notes that with respect to tenders, the labour inspectorate publishes on its website the list of employers in violation of the equal treatment legislation and sanctioned repeatedly in the two years prior to their submission. Recalling that under section 3(2) of Act LXXV of 1996 on labour inspection, the labour inspectorate is able to take action only upon the lodging of a complaint, the Committee strongly encourages the Government to take the necessary measures to ensure protection of workers filing complaints against any reprisals by the employer so as to facilitate access to the remedies provided by the labour inspectorate. The Committee further asks the Government to indicate whether any other measures have been taken to address infringements of the principle of the Convention, including exclusion from tendering, and to provide information on the number of businesses listed by the labour inspectorate in this regard. Please also continue to provide information on the enforcement activities of the Equal Treatment Authority, including on remedies provided and sanctions imposed, and on any equal remuneration decisions handed down by the courts or other competent bodies.