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HATC SAMPLE EDITION:
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24th August, 2026
Pay caps for state-owned company leaders
The government has introduced new pay cap rules for companies in which the state holds a majority stake, effective from August 20, according to a decree published in the official gazette.
State-owned companies will be classified as high, medium or low complexity, with the classification reviewed annually.
High-complexity companies can have boards of up to five members and supervisory boards of up to six, while medium- and low-complexity companies are limited to three members on each.
The decree caps board members’ fees based on the statutory minimum wage. Board and supervisory board chairs can receive up to three times the minimum wage at high-complexity companies, twice the minimum wage at medium-complexity firms, and the minimum wage at low-complexity companies.
Executive salaries will be limited to between 4.12 and 4.94 times the official average wage in the previous year, depending on the company’s complexity.
Annual bonuses for senior executives will be limited to 20% of their base salary, although the government may approve higher pay in justified cases.
Senior political officials will receive no additional pay for serving on company boards.
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Sources regularly consulted, with abbreviations used in text: Népszabadság (N); Magyar Hírlap (MH); Világgazdaság (VG); Napi Gazdaság (NG); Magyar Nemzet (MN); Népszava (Nsz); Kossuth Rádió news (KR); nightly TV news (TV).
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