Parliament on Tuesday approved the new Labour Code, which will come into effect from July 1, 2012.
Hungarians will get a minimum of 20 days of paid vacation a year under the new code, the same as under the current one.
The new code also contains the same job security measures for employees within five years of retirement.
The new code raises the amount of annual overtime for employees from 200 to 250 hours, but the cap is 300 hours if spelled out in a collective contract between employees and management.
Another novelty in the code allows the government to establish different minimum wages based on business sector, geographical area and other peculiarities of the labour market.
Prime Minister Viktor Orban said in the closing debate on Tuesday that the new code did not entirely reflect the government’s intention, adding that "genuine compromises" had been reached.
He said the new code would bring greater security and improved economic performance to the country.