Daily News Hungary economy


Budapest (MTI) – Hungarian employees will enjoy a 40 percent pay increase over the next few years thanks to today’s wage pact, government office chief János Lázár said on Thursday.

The agreement is augmented by government measures spanning several years ahead, Lázár told a weekly government press briefing, noting a hike in the minimum wage combined with a cut in payroll taxes. The wage increases are partly contingent on full employment and a work-oriented society, he added.

The wage agreement is relevant to 1.2 million people, he said, calling the deal the greatest achievement of the past decade.

The wage deal was struck by the ruling Fidesz party rather than the left-wing opposition, which had done no more than talked “blah-blah about higher wages”. The significant strengthening of Hungary’s economy in recent years made the wage hikes possible, he added.

“Europe is weakening; its economic outlook is uncertain, while Hungary has a stable and completely clear economic situation,” Lázár said, adding that the government had settled the public finances.

Lázár said that “with parliament consent”, it was possible that a balanced budget could be passed in 2017.

Source: MTI

1 comment
  1. This is great; except for those who are on retirement benefits…How will they be able to afford the housing prices; food prices, etc. if economy grows in Hungary to include only workers? What about the old people???? Just wondering….they are already suffering with not enough pension…How will this affect their ability to keep their lives on track & feed themselves, etc. if their pensions are still the same as before salaries are raised? They no longer are in the workforce – yet will have to contend with higher prices due to higher salaries…Better think this thru…Not that Hungarians don’t deserve higher wages; but think of those out of the workforce & aged!!!!! What will happen to their ‘standard of living’ which is already very low/?????

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