Below, we provide an overview of legal compliance, deadlines, obligations, and the supporting role of NEXON's digital HR solutions.
Who needs to comply, by when, and in what way?
Next year, wage transparency will become an unavoidable issue in European and Hungarian workplaces. Below, we provide an overview of legal compliance, deadlines, obligations, and the supporting role of NEXON's digital HR solutions.
The essence of wage transparency regulation
The European Union's Wage Transparency Directive 2023/970 requires mandatory implementation by June 7, 2026, for member states, including Hungary. The basic principle of the regulation is:
- Reducing the gender pay gap
- Eliminating wage discrimination
- Developing transparent, justifiable wage systems
Who is affected and what are the main deadlines?
Compliance obligations are mainly differentiated based on the number of employees in an organization:
Important:
By June 7, 2026, all Hungarian companies, regardless of their size, must comply with wage transparency principles.
All job advertisements must include salary information for the position.
It cannot be ruled out that the national legislator will also impose minimum guidelines on companies with fewer than 100 employees.
What are the requirements?
Obligations and tasks in detail
- Transparent wage system:
- Wage bands – consistent, justifiable wage bands must be defined for each position and made available before the job advertisement is published.
- Employees have the right to receive information about the average salary of employees in the same (or equivalent) job, broken down by gender.
- Prohibition of confidentiality:
- The possibility of keeping salaries confidential will be eliminated; employers will not be able to demand that salary data be kept secret.
- Obligation to report wage data:
- The report must include all supplementary remuneration (e.g., bonuses) in addition to monthly wages, as well as the ratio of male to female employees and a specific numerical presentation of wage differences.
- If the pay gap exceeds a 5% threshold for the same jobs, it must be justified and, if necessary, corrected.
- Objective wage determination:
- For new employees, salary decisions can only be made on the basis of objective, verifiable factors (e.g., experience, performance, responsibilities); candidates' previous salaries cannot be asked about during the recruitment process.
- Regular internal communication:
- Creating an organizational culture that supports transparency and a continuous flow of information.
Salary transparency with NEXON's digital HR solutions
Compliance with wage transparency regulations requires structured data, which is impossible without a digital HR environment. NEXON's complex digital HR solutions already help companies by providing solutions for regulatory compliance and wage transparency. It supports wage data analysis, wage band management, gender pay gap reporting, and the development of job and wage structures tailored to the organization's operations.
- Automated payroll data collection and reporting: The system enables the simple and rapid generation of payroll and HR data required to meet reporting obligations.
- HR controlling, management decision support, HR dashboard: Drawing on more than three decades of expertise, we have created our NEXONanalytics solution, which provides decision-makers with HR indicators based on best practices. Wage management: The distribution of classification wages within a given wage interval shows the direction in which the average classification wages at companies are shifting.Flexible reporting structure: reports can be customized based on changing legal requirements, which is key to wage transparency.
- Self-service HR portal: NEXON's self-service portal for employees and managers enables employees to access their relevant data, including their salary records and job descriptions, electronically in real time.
- Secure access: Mobile and web access that supports working from home with 24/7 service while ensuring a high level of data security and data protection.
The new era of wage transparency is not only a legal requirement for companies, but also a cultural and managerial challenge. Inadequate internal regulations can cause serious employee dissatisfaction and operational damage!
As the legislation is finalized, we will support further developments to ensure that the relevant parties have appropriate access to wage transparency data. To identify and address anomalies in remuneration and solve emerging tasks, we are preparing a dedicated implementation that will enable our partners to effectively develop the most suitable HR solution for themselves and their employees! We will inform you about this in due course.
Upon request, we also provide expert support, taking into account best industry practices, so that our partners can use customized, optimal operating practices!
NEXON's HR solutions make it faster, easier, and more efficient to meet complex requirements, which can give our customers a significant competitive advantage.
If you have any questions, please feel free to contact our colleague at on@nexon.hu.
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