Tuesday, 2 June 2026

Here is a practical method for comparing the value of different jobs

 Although the transposition of the EU Pay Transparency Directive into Hungarian law was not completed by the June 7, 2026 deadline, the issue remains on the agenda, and the process is expected to be finalized by the end of the year. The domestic regulation will most likely be similar to the provisions of the EU directive, so businesses can begin reviewing and reshaping their pay systems. Familiarizing themselves with the case law of the Court of Justice of the European Union and national courts can support this preparation.

employment, equal wage equal work, Pay Transparency, Worklaw

One of the landmark rulings was delivered in the case of the fashion company Next. The lawsuit was initiated by 3,500 retail sales assistants who felt 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.

“To avoid similar situations, the solution may lie in developing a competency framework that defines the required skills and abilities for each position, and on which an objectively based and legally robust pay structure can be built,” emphasized Dr. Adrienn Orosz, Head of the Labour Law Practice Group at LeitnerLaw.

LeitnerLaw and LeitnerLeitner, together with their World of Work business division, have created an integrated system that examines employment issues in a unified and coherent manner and provides clients with full employment expertise through a single point of contact. In practice, this means less coordination, lower risk, and greater focus for clients. Request our offer for the development of your competency framework and pay structure, and feel free to contact us with your labour law questions.

In a classification system that guarantees equal pay for equal work, jobs of equal value are placed into the same category (grade), although different roles and positions may exist within a single category. Pay bands are linked to categories rather than to individual positions or roles. The pay structure must be objective and gender-neutral.

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, although additional factors may also be included. The more detailed the criteria system, the more objective the comparison will be. It is also essential that the evaluation be unbiased.

Unjustified discrimination can have serious consequences: in addition to compensation payable to employees retroactively for up to three years with no upper limit, fines may also be imposed on the infringing company. The exact amount is not yet known, but 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?