Hungary chapter in Lexology In-Depth: executive remuneration

Explore the latest insights on executive remuneration in Hungary with the 13th edition of Lexology In-Depth. This global overview covers key legal areas influencing executive pay, including tax, employment and corporate law. Authored by Barnabás Buzási, Gergely Szaloki, János Pásztor, Bence Kalman and Viktoria Horvath, the Hungary chapter examines the definition of an executive under Hungarian labour law and the specific remuneration regulations applicable to them.

In Hungary, the term “executive” generally refers to senior management roles, such as CEOs and managing directors. However, under labour law, an individual is recognised as an executive only if they operate under an employment contract. This legal distinction allows for different treatment in remuneration, including eligibility for allowances, bonuses and participation in share schemes. Collective agreements do not apply to executives, offering greater flexibility in defining terms of employment.

Recent amendments to Hungarian employment law, effective from January 2024, impact various aspects of working conditions. Notably, the six-hour daily limit for screen work has been abolished and changes to occupational health checks will come into force in September 2024. These adjustments reduce the scope of mandatory health examinations, although employers remain responsible for ensuring safe and healthy working conditions.

For a detailed analysis of these developments and more, download the full Hungary chapter below.