Hungary caps pay for state-owned company executives by complexity

The Hungarian Government has introduced a new, complexity-based remuneration framework for the executives of majority state-owned companies, capping the pay of board and supervisory board members as well as senior employees. The measure is set out in Government Decision 1263/2026. (VIII. 19.) Korm. határozat, published in the Magyar Közlöny (issue 115 of 2026, p. 4018) and signed by Prime Minister Magyar Péter.

The decision, adopted under the framework of Act CXXII of 2009 on the more economical operation of publicly owned companies, replaces the previous system established by 1660/2015. (IX. 15.) Korm. határozat, which is repealed. The Government states that the aim is to ensure the lawful, ethical, economical and efficient management of public assets and public money, and to rationalise the operating costs of state-controlled companies.

Complexity-based classification

All majority state-owned companies are placed into one of three categories — low, medium or high complexity — based on criteria such as balance-sheet total, fixed assets, equity, operating revenue, average headcount, group structure, market share and size relative to competitors. The classification is reviewed every year by 15 July, and may be adjusted on the proposal of the minister responsible for state asset management.

• High-complexity companies (Annex 1, 44 entities) include MVM Energetika, MVM Paksi Atomerőmű, Paks II Atomerőmű, MÁV Magyar Államvasutak, Magyar Posta, MFB Magyar Fejlesztési Bank, Magyar Exporthitel Biztosító, Szerencsejáték and Államadósság Kezelő Központ.
• Medium-complexity companies (Annex 2, 40 entities) include HungaroControl, Magyar Turisztikai Ügynökség, Diákhitel Központ, Nemzeti Filmintézet and Városliget Ingatlanfejlesztő.
• All other companies fall into the low-complexity category.

Board size and remuneration caps

The decision fixes the maximum size of governing bodies and ties the remuneration of their members to the statutory minimum wage (minimálbér).

• Boards: up to 5 members in high-complexity companies, and 3 in medium- and low-complexity companies.
• Supervisory boards: up to 6 members in high-complexity companies, and 3 in medium- and low-complexity companies.
• Board and supervisory board chairs: remuneration capped at 3× the minimum wage (high), 2× (medium) and 1× (low).
• Board and supervisory board members: capped at 2× the minimum wage (high), 1.5× (medium) and 0.75× (low).

Political senior managers (under the Act CXXV of 2018 on government administration) are not entitled to any remuneration for these posts, while professional senior managers are entitled to half of the applicable amount.

Senior executive pay and bonuses

For senior employees (leading employees under Act I of 2012, the Labour Code), the maximum gross monthly base salary is tied to the national average gross wage published by the Hungarian Central Statistical Office:

• High complexity: up to 4.94× the average wage.
• Medium complexity: up to 4.53× the average wage.
• Low complexity: up to 4.12× the average wage.

Bonuses are limited to 20% of the annual base salary. If a company posts a negative after-tax result, the owner must inform the Government before any bonus is paid. The Government may, on a reasoned request from the owner and the minister’s proposal, authorise a higher base salary or bonus, and may approve wage increases above the forecast inflation rate during business planning.

Impact

The decision, which enters into force the day after its publication, gives the Government a single, transparent yardstick for the pay of executives across the entire state-owned sector, from energy and transport to postal and financial services. For the managers of the roughly 80 companies explicitly listed, the new caps mean a direct ceiling on both fixed pay and bonuses, while the annual review of classifications keeps the framework responsive to changes in company size and market position.

Source: Magyar Közlöny, issue 115 of 2026, 19 August 2026, p. 4018 (official reference: 1263/2026. (VIII. 19.) Korm. határozat).