Direct Request (CEACR) - adopted 2020, published 109th ILC session (2021)

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

The Committee takes note of the Government’s report and the supplementary information provided in light of the decision adopted by the Governing Body at its 338th Session (June 2020).

The Committee notes, from the supplementary information provided, that the economic effects of the COVID-19 pandemic became apparent between February and April 2020, as women’s employment rates fell from 62.5 per cent to 61.4 per cent. The Committee asks the Government to provide information on the impact of the COVID-19 pandemic on the employment rates of both men and women. It also asks the Government to take measures to ensure that women are not disproportionately affected in terms of access to employment and occupation in comparison with men.

Article 1 of the Convention. Equal remuneration for work of equal value. Legislation.  The Committee refers to its previous comments in which it noted that, despite a reference to “the equal value of work” in the Labour Code (section 12(3)), the provision does not explicitly provide for an obligation to pay men and women equal remuneration for work of equal value and refers only to the principle of equal treatment in remuneration generally. The Committee notes with regret the Government’s statement in its report that the definition of equal remuneration in section 12(3) of the Labour Code remains unchanged. The Committee recalls that the concept of work of equal value lies at the heart of the fundamental right of equal remuneration for men and women for work of equal value and the promotion of equality, as it permits a broad scope of comparison including, but going beyond equal remuneration for “equal”, “the same” or “similar” work, and also encompasses work that is of an entirely different nature, but which is nevertheless of equal value (2012 General Survey on the fundamental Conventions, paragraphs 672-679). The Committee asks the Government to amend the Labour Code with a view to giving full expression to the concept of work of equal value in order to provide not only for equal remuneration for equal, the same or similar work, but also to address situations in which men and women perform different work which is nevertheless of equal value.

Articles 1 and 2. Gender pay gap.  In its previous comment, the Committee asked the Government to continue providing information on the specific measures addressing the underlying causes of the gender pay gap, as well as statistical information on the distribution of men and women in the various sectors and occupations and their corresponding earnings in the private and public sectors. The Committee notes from the statistics supplied by the Government that women’s earnings amounted to 85.1 per cent of the monthly average earnings of men in 2018, a slight increase from the 2015 figure of 84.2 per cent (with the wage gap falling from 15.8 per cent in 2015 to 14.9 per cent in 2018). It takes notes that the gender pay gap is narrower among young adults (a gap of 9 per cent) and tends to increase from the age of 30, a difference which can probably be explained by women taking time off work due to pregnancy and childcare. The Committee notes the Government’s indication that the gender pay gap is higher in the public sector than in the private sector: in the public sector, women earn 81 per cent of men’s earnings, while in the private sector, they earn 85 per cent of men’s earnings. The gap is even higher in managerial positions: women managers in the public sector earn 75 per cent of the earnings of men managers, and 80 per cent in the private sector. The Committee notes the Government’s statement that it currently has no intention of amending the legislation in relation to wage policy. The Committee also notes, from the Government’s report on the application of the Employment Policy Convention, 1964 (No. 122), the various measures taken to assist women in returning to work after having children and helping them balance work and family responsibilities, such as the “Child Care Allowance Extra” package, allowing parents with infants to work, in addition to receiving benefits and the establishment of Family and Career Centres, which assist women through the provision of training and mentoring services. In its supplementary information, the Government indicates that a new “Women’s empowerment in the family and society” Action Plan (2021-30) is under consultation. The Action Plan outlines measures to address the gender pay gap. The Committee asks the Government to ensure that the “Women’s empowerment in the family and society” Action Plan (2021-30) contains specific measures to address the underlying causes of the gender pay gap, including occupational gender segregation. It asks the Government to provide information on the status of implementation of the Action Plan, as well as on the impact of the measures taken. The Committee also asks the Government to continue providing updated statistical information on the distribution of men and women and their corresponding earnings in the various sectors and occupations, in the private and public sectors.

Article 2. Minimum wages.  The Committee notes from the information provided by the Government that the gross monthly minimum wage increased by 102 per cent between 2010 and 2019, to reach 149,000 Hungarian forint (HUF) in January 2019. In its supplementary information, the Government indicates that in January 2020 the gross minimum wage was increased to HUF161,000. The Committee notes with interest the significant wage increases in recent years in sectors employing a large proportion of women, such as public education, healthcare and social institutions. As examples, the Government provides details on the increase of the minimum wage in the social sector (from HUF138,000 in 2018 to HUF149,000 in 2019), and for professionals working in day-care facilities (with an average monthly wage of HUF202,000). The Committee notes the Government’s statement that these wage increases were targeted in many instances at women. In 2017, 2018 and 2019, wages were also increased in law enforcement, defence, county government offices, the judicial system, municipalities, education, culture, healthcare and the social sector. The Committee asks the Government to continue providing information on minimum wages in the public and private sectors. Noting the Government’s indication that job classifications and salary systems in the public sector continue to be under review, the Committee again asks the Government to provide precise information on how it is ensured that, in redefining the minimum wages for the jobs concerned, rates are fixed on the basis of objective criteria, free from gender bias, and that female-dominated occupations are not undervalued in comparison with those predominantly undertaken by men.

Collective agreements.  In reply to its previous comment, the Committee notes the Government’s indication that it did not implement any measures concerning the private sector, having regard to the fact that the State does not wish to intervene in the private law relations of the parties and that it considers that it is the social partners’ responsibility to promote the removal of unjustified wage differences.  While taking due note of the Government’s position, the Committee again encourages the Government to work with the social partners, including for example through promotional or training activities, to ensure that the principle of equal remuneration for men and women for work of equal value is included in collective agreements, and to consider explicitly including the principle of the Convention in the collective agreements concluded in the public (institutional) sector, and to provide information on the steps taken in this regard.

Article 3. Determination of work of equal value. Objective job evaluation. Private and public sectors.  The Committee refers to its previous comment in which it recalled that the principle of equal remuneration for men and women for work of equal value requires the use of appropriate techniques for objective job evaluation to determine and compare the relative value of work, using criteria that are free from gender bias (2012 General Survey, paragraphs 675 and 701). In this regard, it notes that the creation of a wage transparency tool is still under consultation and is being examined by the Standing Consultation Forum of the Competitive Sector. In view of the above, the Committee asks the Government to ensure that the development of this tool is based on objective criteria that are free from gender bias and, in particular, that the selection of factors for comparison, the weighting of such factors and the actual comparison carried out are not discriminatory, either directly or indirectly. The Government is requested to provide information on any measures adopted to this end.

Article 4. Cooperation with the social partners.  The Committee recalls that the Permanent Consultation Forum (PCF), a tripartite consultative review and proposal-making forum on economic and labour issues, started discussions in April 2016 about the transposition of European Commission Recommendation 2014/124/EU on strengthening the principle of equal pay between men and women through transparency. The Committee notes the Government’s indication that the social partners have not yet reached agreement on the subject.  The Committee asks the Government to continue providing information on any progress made by the PCF concerning the application of the principle of the Convention. It also once again asks the Government to provide information on any other initiatives undertaken in collaboration with the social partners, including awareness-raising campaigns, with a view to advancing the application of the principle of equal remuneration for men and women for work of equal value.

Enforcement.  The Committee notes, from the Government’s supplementary information, that one case regarding the principle of the Convention has been heard by the courts since the provision of the previous report and that it was dismissed. It recalls that the low number of complaints regarding violations of the principle of equal remuneration for men and women for work of equal value does not necessarily indicate that this form of discrimination does not exist. It is more likely to reflect the lack of an appropriate legal framework, the lack of awareness, understanding and recognition of the principle of the Convention among government officials, and workers and employers and their organizations, as well as the lack of access to or the inadequacy of complaints mechanisms and means of redress, or fear of reprisals. Noting that, during the reporting period, the Equal Treatment Authority (ETA) and the courts have found no cases of violations of the principle of equal remuneration for men and women for work of equal value, the Committee asks the Government to take measures to raise awareness of the relevant legislation and to enhance the capacity of the relevant authorities, including judges, the ETA and labour inspectors, to identify and address cases of discrimination and pay inequality. It also asks the Government to examine whether the applicable substantive and procedural provisions allow claims to be brought successfully in practice. The Committee also asks the Government to continue providing information on the activities of the ETA, including the number of cases related to the principle of equal remuneration for men and women for work of equal value and their outcomes, as well as any cases relevant to the application of the Convention examined by the courts, including the sanctions imposed and remedies granted.