Regresar

Public sector pay and procurement in Hungary

Abstract:

In the past ten years public sector pay reform has not been a serious issue on the political agenda in Hungary. However, some major changes have taken place as a result of the budgetary austerity measures introduced since 2006 and the measures taken by the right wing government that came to power in 2010. In order to understand the changes, it is necessary to begin with an analysis of the wagesetting system in the public sector that emerged after 1990, including different labour law regulations in the various segments of the public sector, the predominantly seniority-based wage tariff system and the limited role of national social dialogue and local level collective bargaining.