Minimum Salary Level Increased

The situation

Effective January 1, 2018, the minimum monthly salary for unskilled foreign workers has increased to HUF 138,000 (approximately EUR 445), up 8.2 percent from last year. The minimum monthly salary for skilled workers has increased to HUF 180,500 (approximately EUR 582), up 12.1 percent from last year.

A closer look

• Impact on salary calculations. This change affects the calculation of a foreign worker’s salary since a foreign worker’s salary must be at least 80 percent of the Hungarian average salary for the specified position, and cannot be lower than the minimum salary level.
• Initial and renewal applications. Employers of foreign nationals seeking to obtain or renew a work permit on or after January 1, 2018 must increase the foreign national’s minimum salary to comply with the new rule.
• Pending applications. Employers of foreign nationals with pending work permit applications as of January 1, 2018 must increase the foreign national’s minimum salary to comply with the new rule. 
• Noncompliance. Applications that do not meet the minimum salary will be rejected.
• Benefits and allowances. As before, no benefits and allowances of any kind may be included in the minimum salary calculation.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to emea@fragomen.com.