LEGAL ALIGNMENT FOR EU PAY TRANSPARENCY DIRECTIVE IN HUNGARY: A GAP ANALYSIS1

Summary

The research paper, "LEGAL ALIGNMENT FOR EU PAY TRANSPARENCY DIRECTIVE IN HUNGARY: A GAP ANALYSIS" by J. Hajdú (2026), undertakes a critical examination of Hungary's existing legal landscape in relation to the requirements of the EU Pay Transparency Directive (Directive (EU) 2023/970). The Directive aims to significantly reduce the gender pay gap and enforce the principle of equal pay for equal work or work of equal value across the European Union by increasing transparency in remuneration systems. Member States, including Hungary, are mandated to transpose this Directive into national law by June 7, 2026. The methodology of such a gap analysis typically involves a systematic comparison between the explicit mandates of the EU Directive and the current provisions within Hungary's national legislation, particularly its Labour Code and related statutes. This comparative approach would pinpoint specific areas where Hungarian law either lacks corresponding provisions, has insufficient detail, or presents conflicting principles. For instance, while Hungary's Labour Code already embodies the principle of equal pay, it currently does not necessitate structured gender pay reporting, the disclosure of salary ranges in job advertisements, the implementation of job-evaluation frameworks, or comprehensive pay transparency rights for employees, all of which are central to the EU Directive. The paper's key findings likely reveal substantial gaps that Hungary must address to comply with the Directive. These gaps would encompass the absence of legal requirements for employers to proactively disclose salary ranges in job postings, to ban inquiries about a candidate's pay history, and to grant employees the right to request information on their individual pay and the average pay levels (disaggregated by gender) for comparable roles. Furthermore, a significant finding would be the lack of robust mechanisms for mandatory gender pay gap reporting for companies above a certain size, including reporting on overall pay gaps and by categories of workers, and the directive's mandate for joint pay assessments if a significant unexplained pay gap persists. The paper would also highlight the absence of a reversed burden of proof in pay discrimination cases and strong procedural safeguards for employees, both of which are critical components of the EU Directive. The implications of these findings are that Hungary needs to enact comprehensive legislative changes to align its national law with the Directive's ambitious transparency and enforcement goals. The research would offer recommendations for legislative amendments and practical guidance to facilitate Hungary's effective transposition of the Directive, ensuring a more equitable and transparent compensation environment for its workforce.