International Tax, Accounting and Law Firm in Hungary
Pursuant to the Labor Code, wages and salaries must be established and paid in Hungarian Forint (Section 154 (1) of the Labor Code). There are two exceptions from the above rule:
If the salary has been stated in a foreign currency and does not fall under a legal exception, then the relevant part of the employment agreement is invalid. In this case, the salary must be converted into forints.
The above prohibition also applies to additional wage elements, that is bonuses can also be paid only in HUF. A possible solution is for the salary to be determined in such a way that the amount reflects the governing exchange rate, either on a regular basis or as a regular raise.
The salaries of managers and employees working abroad can not only be paid in HUF, but also in other currencies, such as euros.
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