bértörvény

Bértörvény refers to the labor law reforms introduced in Hungary in 2020. The primary goal of the reforms was to restructure the minimum wage and tax policies affecting salaries. The law was formally passed in June 2020 during the COVID-19 pandemic. Observers noted the timing as concerning, as critics argued that the changes prioritized corporate interests over workers' rights.

Under the new legislation, the minimum wage decreased by 19%, resulting in a loss of purchasing power for lower-income individuals. Moreover, the reforms allowed employers to pay workers as little as 75% of the social minimum wage, provided that the full social minimum is paid to those who would be entitled to it under the previous system.

Some analysts argued that the changes helped private employers compete more favorably with public sector jobs. The government countered by stating that these reforms encouraged employment by simplifying vocational training procedures. Moreover, jobs gained under the Bértörvény were categorized differently than those under the old system, making it easier for companies to remove job security. Critics noted that this allowed employers to dismiss employees more readily.

The impacts of the Bértörvény continue to affect Hungarian labor markets and workers' rights. These unemployment rates and poverty indicators remain high in many parts of the country. Despite the government's description of the policy changes as beneficial, numerous warnings of the potential consequences of this policy have been raised.