Entrepreneur association: significant wage rise in Hungary impossible wihtout these measures
Government plans to raise the monthly minimum wage to EUR 1,000 and the average wage to HUF 1 million by 2028 can only be “realistic” if businesses get support and their tax burden is eased, entrepreneur and employer association VOSZ said in a statement issued on Tuesday.
VOSZ also said wage increases needed to be linked to economic growth, inflation and productivity indicators.
VOSZ said it backed a tiered minimum wage system that took into consideration the particularities of various business sectors to replace the uniform minimum wage for skilled labourers.
Read also:
- PM Orbán announced big plans concerning Hungarian econom, says he is ready to fight – read more HERE
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2 Comments
The Real Person!
The Real Person!
VOSZ just laid out why the Fat Man’s wage proposals are a fantasy. Wage growth is completely dependent on increased labour productivity and business profit margins. The market is the market and every single day it seems that I see a new crazy proposal from Fidesz to interfere in the free market in a way that is impossible to implement. What do you think the importation of low wage migrant workers is in relation to wage growth? They depress wages. This government is a total disaster. These wild proposals are a sign of desperation on the part of the Fidesz government as they realize that they are failing to foster a strong economy that provides good jobs for Hungarians and they know discontent is brewing. Lower taxation would help businesses but the government is completely broke spending their money on kindergartens in Croatia, building Christian churches in Lebanon and central America, soccer stadiums and various corrupt useless projects that cost Hungarians and the EU billions of forints.
Completely agree, stating that wages will rise to X or Y is like pointing at the night sky and claiming a shooting star will appear right there in the next 10 minutes. While governments obviously have an instrumental role is creating a climate in wage rises are possible, they cannot accurately predict, much less mandate that wages will grow by a certain percentage. They can stipulate that minimum wage will increase which has an upward effect on all other wages, but they cannot do this without companies being in a position to pay them without going bankrupt en masse. Wages are lagging to such a degree that rises of this magnitude are pure fantasy, wishful thinking on the part of a government that seeks to dangle something appealing in front of an electorate while knowing there’s zero chance of them increasing to this level within the foreseeable future.