Introduces temporary amendments
From 1st August, employers are able to offer a single, one-off payment into the SZEP card account that is allowable until 31st December 2023.
The Decent Work Agenda project is being implemented to cover a wide range of topics, including employment contracts, severance, collective bargaining and leaves. Some of the main changes include:
The one-time amount is limited to HUF 200,000 and is subject to 15% personal income tax and 13% social contribution tax. This payment is in addition to the annual 450,000 HUF SZÉP amount that can be provided. Employees - or their close relatives that have been given a companion card - can now also use the card to purchase from food and beverage merchants that accept the card. This applies to the funds for the annual limit amount, plus the one-off payment.
The one-time benefit does not have to be prorated according to the employee’s length of service (unlike the 450,000 HUF recreational limit).
Introduces Work-Life Balance Act 2023
Effective from 3rd July 2023, the Work-Life Balance Act has been introduced. This includes provisions for breastfeeding breaks and medical care leave.
Breastfeeding breaks are extended to 2 years up from 6 months, to assist and support parents back into work following maternity leave. Leave can be taken in either a single hour break, two 30-minute breaks or three 20-minute breaks per normal working day. These breaks will remain paid at the employee’s normal pay.
Parents and carers are entitled to up to 5 days of unpaid leave to care for a sick child, family member or anyone within your household. Leave must be taken in periods of a minimum of 1 day up to the 5-day maximum in any 12 consecutive months. This is a new statutory leave that is being introduced and is in addition to
Introduces right to disconnect
Effective from 4th July 2023, employees will now have the right to disconnect from work under a change to the labour code.
The law applies to employers with more than 15 employees, and for those with at least 150 employees the staff delegation must be part of the agreement process with the employer. For smaller headcounts, the staff delegation must be consulted but are not part of the negotiations.
Companies can decide on the best way to enforce the disconnection, such as turning off systems to not allow access outside of working hours, leaving digital equipment in the office or having ‘out of office’ stating working hours. Employers must also ensure that their employees are fully aware of the new stipulations and ensure training is provided.
For employers who do not adhere to the new law, there will be administrative fines (from €251 up to €25,000) for breaches that occur on or after June 20, 2026 — 3 years after the law’s publication in the official journal.
Expands family leave entitlement
Effective by Royal Decree from 30th June 2023, family leave entitlement has been amended.
Highlights of the changes include:
- 5 days’ leave (increased from 2 days) to care for a relative (up to the second degree of relation), spouse or unmarried partner and anyone living with the employee in the same household and in need of care.
- Up to 4 days of leave per year for unforeseeable or urgent reasons. This leave can be calculated on an hourly basis.
- 2 – 4 days of leave for the death of a spouse, unmarried partner or relative (up to the second degree of relation)
- 15 days of leave for a civil partnership registration matching marriage leave.
- Parents are entitled to up to 8 weeks of parental leave to care for a birthed, adopted or fostered child (where the foster arrangement is for more than 1 year), up to age 8. The leave is non-transferable and can be taken continuously or in periods of the employee’s choice.
Amends unemployment insurance
All employees were required to implement their own personal unemployment insurance by 30th June 2023.
The deadline for these plans to be implemented has been extended to 30th September 2023, those who do not comply with legislation could face fines of AED 400 (US$ 108) from 1st October 2023.
Minimum wage increases from 1st July 2023
following the Fair Work Commission’s annual wage review to AU$ 882.80/week (or AU$ 23.23/ hour). This is based on a 38-hour week for a fulltime employee.
The minimum wages in modern awards has increased by 5.75%. This applies to all modern award minimum wages, modern enterprise award wages and state reference public sector awards.1
The new monthly minimum wage will be set at PYG 2,680,373 (approximately US$ 368). This adjustment is equal to a 5.1% increase on the previous minimum wage, which was PYG 2,550,307.2
Gross minimum wage was increased to TRY 13,414, which is an increase from TRY 10,008. The new net minimum wage is TRY 11,402, an increase from TRY 8,506.80 TRY.3