Breaking: minimum wage agreement signed in Hungary – UPDATE

An agreement reached recently by unions and employers associations on minimum wage rises was signed on Monday, the economic development ministry said.

The agreement was signed by all members of the VKF, a forum of employers, unions and the government, with the exception of unions association MASZSZ.

Under the deal, the monthly minimum wage for unskilled labourers will rise by 15 percent to 266,800 forints (EUR 704), while the minimum wage for skilled workers will increase by 10 percent to 326,000 forints as of December 1, the press release said.

The agreement contains a recommendation for businesses to increase pay to a degree that ensures real wage growth. It also paves the way for talks on changes to the minimum wage system that would preserve earners’ purchasing power and expresses a commitment to encouraging collective contracts.

Sandor Czomba, state secretary at the economic development ministry, said the agreement would favourably impact the whole of the national economy. He said the deadlines agreed on were “such signal points of direction that convey an important message to all players of the economy.”

Minimum wage and guaranteed minimum wage in Hungary (1 December 2011-2023). Source: MTI

During the wage negotiations, he added, the sides had seen eye to eye. “It is worth making joint decisions in the longer run and focusing on strengthening the economy following this year’s measures aimed at reining in inflation,” he said, noting the government’s commitment to increasing real wages “every year in line with economic performance”.

Trade union federation MOSZ head Imre Palkovics said the agreement was “an acceptable compromise in light of the circumstances and economic reality”. He said employees had sought a pay hike to compensate for inflation and to reduce the gap between the minimum wage and the average, goals “we have managed to meet”.

Ferenc Rolek, deputy head of national employer federation MGYOSZ, said the early date on which the agreement had been reached indicated “a positive attitude” on the part of the sides in the talks. He said employer representatives had made “huge compromises” but they “felt a commitment to increasing the living standards of the poorest”. In view of a planned 6 percent inflation next year, the real income of minimum wage earners will increase by 9 percent, he said, adding that it was a great achievement by “an economy just recovering from recession”.

As we wrote a few weeks ago, Half a million guest workers in Hungary – details HERE

Also, we listed the best-paying jobs in Hungary as of 2023.