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House approves public exec salary cap

Parliament approved a bill that limits monthly salary of management at majority state-owned companies to a quarter of that of the president of the National Bank of Hungary (MNB) or HUF 2 million a month from 2010.

MPs approved the bill with 181 ayes, 19 nays and 151 abstentions.

The law limits the monthly honoraria for board chairmen to seven times the minimum wage (HUF 71,500) and board members' honoraria to five times the minimum wage. Honoraria for supervisory board chairmen are capped at five times the minimum wage, and supervisory board members are to receive no more than three times the minimum wage.

The limits do not apply to MNB employees. They are effective on contracts signed after the law takes effect, eight days following its publication.

The law also requires the public disclosure of remuneration, including severance pay, for the management of all majority state- or local council-owned companies.

The requirement embodied in the law was earlier in a government decree issued in September. (MTI – Econews)