A practical approach to comparing the value of different jobs

 Although the transposition of the EU Pay Transparency Directive into Hungarian law was not completed by the 7 June 2026 deadline, the process remains ongoing and is expected to be concluded by the end of the year. The Hungarian regulatory framework is likely to closely follow the provisions of the EU Directive, enabling companies to begin reviewing and adapting their remuneration systems. In preparing for the new requirements, companies may benefit from familiarising themselves with the case law of the Court of Justice of the European Union and national courts.

One of the landmark judgments in this area was delivered in the case against the fashion retailer Next. The proceedings were brought by 3,500 retail sales employees, who claimed that they were unjustifiably paid less than warehouse employees.

In its decision, the court presented an evaluation of the sales and warehouse positions. It examined what knowledge is required to perform the jobs, how much planning and organizational work employees undertake, whether they assume responsibility for equipment and safety, whether they have communication, customer service, or training duties, the level of mental and physical strain they face, and the working conditions under which they operate. Expectation levels and point values were assigned to these criteria, and it was concluded that the two roles are essentially of equal value. Next was required to revise its pay policy and pay approximately £30 million in back wages (around HUF 13 billion) to the 3,500 retail employees who brought the claim.

“One way to avoid similar situations is to develop a competency framework that defines the skills and competencies required for each role and provides the foundation for a pay structure based on objective evaluation and capable of withstanding legal scrutiny,” emphasised Dr Adrienn Orosz, Head of the Employment Law Practice Group at LeitnerLaw.

Through their World of Work Practice, LeitnerLaw and LeitnerLeitner have developed an integrated approach that addresses employment-related matters in a holistic and interconnected manner. This enables clients to access comprehensive employment expertise through a single point of contact. In practice, this means fewer coordination efforts, lower risks and greater focus for clients. Contact us for a tailored proposal on developing your competency framework and pay structure, and feel free to rely on our expertise for all your employment law matters.

In a job classification system designed to ensure equal pay for work of equal value, jobs of equal value are assigned to the same grade. However, a single grade may encompass different jobs and positions.

Pay ranges are assigned to each grade rather than to individual jobs or positions.

The pay structure must be based on objective and gender-neutral criteria.

General, industry-independent factors should be used to evaluate jobs. At least four criteria should be considered: the skills required, the effort involved, the level of responsibility, and the working conditions. However, additional criteria may also be included. The more detailed the evaluation framework, the more objective the comparison will be. The evaluation must also be unbiased.

Unjustified discrimination can have serious consequences:

Unjustified discrimination can have serious consequences: employees may be entitled to claim compensation retrospectively for up to three years, without any upper limit, and companies found to be in breach may also face fines. The exact amount of these fines is not yet known; however, sanctions must be proportionate, effective and dissuasive.

Further details: 

Pay transparency in practice: a useful method for comparing the value of different jobs

What does the principle of “equal pay for equal work” mean?