Archive:Public employment - Hungary
This Statistics Explained article is outdated and has been archived.
- Source: Ministry of the Spanish presidency 2010, publication "Public employment in the European Union Member States" .
This article is part of a set of background articles and introduces public employment in Hungary.
Regional and administrative organisation
The current Hungarian Constitution was approved in 1949, and its last modification was on 23rd October 1989, in which the Republic of Hungary is defined as “an independent, democratic constitutional state, in which supreme power is vested in the people and the government exercises its power within the framework of a State of Law representing a parliamentary constitutional democracy”.
It is a member of NATO and has been a Member State of the EU since 2004.
System of government
The National Assembly is the highest authority of the State and is elected by popular vote. It elects the President of the Republic, President of the Government, members of the Constitutional Court, Parliamentary Commissioners, President and Vice- President of the Audit Office, President of the Supreme Court and the Director of Public Prosecutions. The Hungarian Parliament has a single chamber.
The President of the Republic: The Head of State of Hungary is the President of the Republic, who expresses the national unit and ensures the democratic functioning of the State. He is elected by the National Assembly for a period of five years and may be re-elected once.
El Government consists of the President of the Government and Ministers. The President of the Government is proposed by the President of the Republic to the National Assembly who decides on his election by majority vote and approves his Government programme. Ministers are appointed and removed by the President of the Republic, on the recommendation of the President of the Government.
The Government shall be accountable to the National Assembly, and regularly reports on its actions. In turn, members of the Government are accountable to the President of the Republic and the National Assembly.
Hungarian Electoral System: In accordance with the 1997 Hungarian Electoral Law, the President of the Republic is the competent authority to call elections, whereby the Ministry of the Interior and the National Electoral Commission are responsible for organising the elections and ensuring they are carried out properly.
Parliament is made up of 386 seats, in accordance with the following distribution:
- 176 members are elected in single-seat constituencies;
- 152 members are elected from the lists in Budapest and other Provinces;
- 58 members are elected from the national compensation seats.
In the single-seat constituencies, there is a two-round electoral system in case one of the candidates does not win an absolute majority in the first round. Regards voting for lists, the seats are divided according to the percentage of votes received by each list in each region. As for the national compensation list, it is not possible to vote directly for this. The Hungarian electoral system favours the majority parties, particularly the most voted; and hence strengthens the possibility of creating a stable majority government. Furthermore, it encourages the parties to join forces as coalitions in the second round.
The Judicial System: Justice is administered by: the Supreme Court of the Republic of Hungary, the Court of the Capital City and the county courts, and local courts. Legislation may provide for the institution of special courts for certain groups of cases. The courts administer justice in councils of professional judges or magistrates and lay-members, whereby legislation may authorize exceptions to this rule.
The Supreme Court of the Republic of Hungary manages the principles of the judiciary of the Republic.
The Constitutional Court reviews the constitutionality of legal stipulations and carries out the functions attribu ted to it by legal mandate. It is made up of members elected by the National Assembly.
Regional organisation
Hungary is a decentralised unitary State. The central government has representatives in the 19 Departments (Comitats), which have wide-ranging competences. Hungary is administratively sub-divided into 20 Regions, of which 19 are counties (“megyék”, singular: “megye”) and the other is the capital city (“főváros”), Budapest. There are also 23 towns with county rights, sometimes known as “urban counties”. Although the local authorities of these towns have extended powers, these towns cannot be considered as independent territorial units. On the other hand, there are seven statistical regions created in 1999 by Law 1999/XCII, which amends Law 1996/XXI. It is hoped that the regional division will replace the current administrative division of 20 regions. Regions are made by grouping the territorial units together.
The Constitution regulates the local autonomous bodies. It establishes that: the territory of the Republic of Hungary is divided geographically into the Capital of the country, Provinces and Municipalities, which are divided into cities and villages. The Capital of the country is divided into districts. It recognises that local self-government is the “autonomous and democratic management of local public affairs affecting the communities concerned, is the exercise of local public authority in the interest of the population”.
Their bodies are the democratically elected Autonomous Representative Body. It regulates and administers matters of self-government; manage revenue and determine the types and amounts of local taxes; may freely form associations with other local representative bodies, create federations of autonomous representative bodies; cooperate with local authorities in other countries and join international organizations of local bodies. The President of the Local Representative Body shall be the Mayor; Laws or government decrees may determine and transfer some of the functions of the State Administration.
Public administration
The Hungarian Central Administration is divided into Ministries. On the other hand, there are other organizations such as Agencies, an important one of which is the Hungarian Research and Development Agency which is responsible for decision-making in relation to public employment, public development and investment and is linked to other entities and networks acting in the public employment field, such as the European Commission Enterprise Europe network.
Public Employment Structure
Legal Basis: Public Officials are regulated by the 1992 Act XXIII on the Legal Status of Public Officials and public servants are regulated by the 1992 Act XXXIII on the Legal Status of Public Servants, both of which regulate the main aspects of public employment.
Activities to be performed by public officials: These activities are published online so that citizens can be aware of their objectives and tools to achieve them. The following public service activities can be highlighted for 2009:
- Recruitment and training of public servants, Public administration managers (central and regional) and personnel for the Hungarian Presidency of the EU in2011.
- Implement the programme specialised in newly recruited public servants (PÖF).
- Administer and supervise EU grants intended for public administration education and human resources.
- Launch an annual programme for senior public managers or directors.
- Set up a professional training centre for public officials.
- Participate in international projects, etc.
Staff Categories:
Public officials perform activities ranging from management, administration, control and supervision and they represent the state when they perform their duties.
Administrator is the name given to those who work for a public administration organization, carrying out administrative tasks.
Contractual workers are employees whose legal relationship is regulated by the Labour Code. They are in charge of collecting material, filing decisions, posting letters,cleaning or driving.
Therefore, the concept of public servant should not be confused with that of public official, as the Public Officials Act does not apply to:
- The organizations of the Hungarian Armed Forces, the Civil Guards, the Police, the national security services, the Fire Department, the Customs Officers, prison officers, civil defence and armed security guards (whereby staff working for these organizations are not public officials, but these organizations may also have some responsibilities that are the same as public officials).
- Persons employed to provide the public services that are part of the responsibilities of the local self-government (public servants), persons employed in non-profit and community service works, or those temporarily working in the civil service (employees working under the scope of the Labour Code).
Public servants are persons employed by the State, local authorities and local self- governments to perform public services (at times, nursery school workers, primary and secondary school teachers, hospital workers, the police, the armed forces are public officials rather than public servants).
Therefore in order to differentiate between public servant and public official or other legal relations, the specific functions performed in the organization shall also be observed.
Conditions to be a Public Official:
A public official shall be a Hungarian citizen; have no prior criminal record; have legal capacity; have at least secondary level studies; pass the entry examination.
The Public Administration entry examination is a condition for public officials that has gradually been introduced since 2007. In fact, the examination has been compulsory since January 2009.
Conditions to be a Public Servant:
The public servant joins the Hungarian Administration: to carry out a substitution or to perform a specific job.
The public servant’s legal relationship shall be established for 5 years in both cases. However, since 2005 the public servant has also performed temporary activities for a more limited time.
Public employment managing body:
In Hungary, there is no single managing body. Therefore the main authorities responsible for public employment within the Hungarian administrative organization are the following:
- Director-General.
- Member of Parliament, Director-General for Human Resource Development and Recruitment.
- Member of Parliament, Director-General for Training and Education.
- Director of the Project and Subsidies Office.
- Financial Director.
- IT Director.
- Central Administration Director for Human Resources and Project Development.
The following are particularly relevant:
- a) The Training and Education Division.
- b) The Human Resource Development and Recruitment Division.
The Training and Education Division prepares a permanent competitive examination focussed on the evolution of public employees in terms of training. It also concentrates on the development of programmes for the improvement and modernisation of central, regional and local administration.
The Human Resource Development and Recruitment Division is developing a system focussed on reducing costs and enhancing the public services offered to citizens.
Rights, obligations, principles and values
Principles: Public employee principles are similar to those established in most European countries, highlighting impartiality, proper performance, fairness and objectivity in the provision of a public service. On the other hand, they are obliged to respect the principle of hierarchical obedience and some employees have to declare their assets and interests prior to taking up office.
Rights and obligations: Public sector employees have the following rights: 1. The individual right to a career in the public service and to training. Since 2006, training is also an obligation. 2. Collective rights such as the right to strike (except for members of the judiciary and the police), as set out in Law VII of 1989 and the right to representation through social dialogue.
Career-based system
The 1992 Civil Servants’ Act regulates an administrative career for an indefinite period throughout their active lives. However, there are certain circumstances in which a civil servant may occupy a post for a fixed period of time.
The basic career of civil servants has been developed over the years, by making the minimum requirements for candidates stricter, particularly after 1997, when the basic public administration regulations were approved, in which some of the most characteristic aspects are defined. Therefore, a degree is a requirement to enter a civil servant position.
The vertical career reaches its ceiling at civil servant supervisor level. Another position on the hierarchical scale that is often performed in the latter years of an administrative career is that of Head of Employment for each unit, responsible for recruiting human resources for each unit.
The national coordination body in this field is the Hungarian Institute for Public Administration, responsible for training, although training is provided on a regional level.
Remuneration
There are different payment categories according to the number of years of service in the Hungarian Civil Service. Public sector employees’ pay comprises a base salary calculated on the civil servant’s position, and additional remuneration for some employees (central administration, National Assembly, Constitutional Court).
The base salary level is set by parliament every year, following negotiations with management and representatives of the leading trade unions. This salary cannot be lower than that of the previous year. There is also position and performance-related pay.
Social dialogue and system of representation
Social dialogue takes place at the National Interest Conciliation Council, where public employees are represented. Issues subject to Social Dialogue are working and living conditions of public employees, salaries, human resource management, etc. It is characterised by its centralized structure and is organised on two levels:
1. National Interest Conciliation Council of the Public Service provides the framework for national negotiation on issues such as salary levels and the organisation of the work of civil servants, public sector employees and the Armed Forces. The State is represented by senior civil servants of the various Ministries concerned.
2. At departmental level, sector-based agreements are concluded between the State and Trade Unions (25-40% of civil servants are members of a trade union).
Senior civil servants
In Hungary, there is no special Senior Civil Service group, like in other European countries. However, there are political figures that hold management positions in the Administration. The following can be highlighted: (Summary Table)
All of these figures share some common characteristics, as the Hungarian Civil Service Act (1992) created “probationary period” which grants a temporary or permanent position in the Civil Service. The common characteristics date back to 1997, when the principles and values required for senior and management posts in the Hungarian Administration were introduced. Since then, the Hungarian Institute for Public Administration, which is responsible for training, among other functions, has been determining which ones should form the basic criteria for entry into the Administration. This criteria is based on:
1. Recruitment: Civil service status is legally considered a “special contractual relationship” between the central, regional, or local government and the civil servant. Civil servant status is awarded during the recruitment process, which begins with direct recruitment by central, regional or local employers. In most cases civil servants are appointed for a flexible managerial post.
2. Assessment. The supervisor of each unit manages and assesses the work of civil servants in the framework of a special evaluation system (TER). This assessment takes place annually.
3. Training and Management Skills Programmes: Initial training for civil servants starts at the Administrative Study University, which offers diplomas on completion of the examinations in the year in which civil servants are registered. On-going training is provided by the Government Centre for Public Administration and Human Resource Services, which opened in 2007 and provides training in a wide range of areas. A new public manager programme is currently underway, which aims to train leaders in administrative organization.
4. Another programme currently being offered is the Executive Management in Public Administration, “EMPA”, which evaluates the quality of the work performed in accordance with OECD criteria. These training programmes ensure that civil servants have the necessary skills to work at the highest level in the Hungarian Administration.
5. Diversity Policies: There are no policies on diversity in Hungary but there are objectives to reach real gender equality in the short term (there is a large percentage of women in the civil service).
6. Work-Life Balance: There are no statistics related to work-life balance for public employees, although it can be verified that the Hungarian system has made enormous progress in this area in recent years. Although part-time work and teleworking are not possible, voluntary flexible working hours do exist.
7. Mobility: Public employees may enter a higher position provided that they fulfil the requirements previously established by their supervisor, prior to a selection process and they fulfil the requirements for the job. This type of mobility is similar to the Spanish system’s vertical mobility.
Coordination with internation organisations in relation to public employment
The Hungarian Administration is committed to the practical development of human resources, recruitment and training of public employees, whereby it is participating in activities within the EIPA and EPSA framework. In turn, Hungary is an active member of DISPA and IASIA, and participates in the Working Group focussing on human resources in the European Union and the OECD. Finally, it is part of the European Senior Civil Servant (ESCS) and the UNDESA network projects.
The programmes that are underway in 2009 are the following:
- Organization, Development and Performance Assessment” at the Administration Centre, in conjunction with the Prime Minister’s Office.
- “Human Resource Management” in the Central Administration in association with the Ministry for Foreign Affairs.
- Employee Management and Training Programmes.
- The number of public employees participating in these programmes is 75 000.
- The importance of better public employment can also be seen by analysing the latest civil service budgets:
Recent reforms and prospects
Reform of institutions and budgetary mechanisms was initiated in 2006 in Hungary. The main objectives are the following:
- Develop larger and more efficient agencies and institutions.
- Reduce the number of minority corps in the Civil Service.
- Reduce the number of duplicate departments.
- Merge inefficient services.
- Develop the necessary management techniques to bring the civil service closer to citizens.
- Develop the quality of public services.
Most of these objectives have already been achieved, although new institutional reforms are underway. The aim of this reform is to clearly define each department’s missions and seek greater administrative transparency and more effective controls.