Breaking: A groundbreaking step in Hungary’s wage negotiations for 2025
At the latest meeting of the Permanent Consultative Forum for Hungarian Industry and Government, another meaningful step was taken towards determining the 2025 minimum wage and guaranteed minimum wage. While a final agreement has not yet been reached, the drafting of the final text is already underway which is an encouraging sign of progress.
Throughout the discussions, both unions and employers have made compromises to close the gaps that have surfaced in recent weeks. According to 24.hu, optimism is growing, fuelled by the participants’ willingness to meet halfway and the emerging framework of a three-year wage agreement that could bring much-needed stability to the labour market.
Source: Pixabay
Economic challenges and considerations
Economic realities have significantly shaped the negotiations. Third-quarter GDP data revealed weaker-than-expected performance, putting added pressure on discussions. Employers, facing these economic challenges, struggled to support the initial proposal for a double-digit wage increase.
While the idea of a 10% rise was widely seen as too steep, a more modest 8% increase was deemed feasible by many. That said, employers have not ruled out higher increases entirely, but they have set clear conditions. Many are looking to the government for support, such as tax cuts, to offset the financial impact. The final outcome will heavily depend on how these economic factors are managed and whether unions’ demands can align with what employers and the government find sustainable.
Source: Pixabay
The current state and goals
There is broad agreement between trade unions and employers on the need for a long-term wage framework, with the ambitious goal of raising the minimum wage to 50% of the average gross wage by 2027. Achieving this will require a concerted effort from unions, employers, and the government. A multi-year agreement could provide much-needed stability, offering businesses and workers predictable wage growth.
Under current plans, the minimum wage is set to rise by 10%, with the guaranteed minimum wage increasing by 7% from the 1st of January 2025. According to VilĂ¡ggazdasĂ¡g, this would see the minimum wage grow from its current gross value of HUF 266,500 (EUR 655) to HUF 293,150 (EUR 720), and the guaranteed minimum wage increase from HUF 326,000 (EUR 800) to HUF 348,820 (EUR 850). These changes will affect a substantial number of workers—particularly the guaranteed minimum wage increase, which could impact 700,000 to 750,000 individuals.
While these adjustments will place a considerable strain on businesses, they also mark a step closer to aligning Hungarian wages with European standards. Over time, these increases could improve the quality of life for low-wage workers and contribute to higher average earnings, ultimately benefiting the broader economy.
The negotiations so far
Negotiations are set to resume on Wednesday, with participants expected to consult further with their respective organisations beforehand. The League of Trade Unions’ leader has expressed confidence, calling an average annual increase of 12% over three years a realistic target. Encouragingly, all sides appear to be converging on their positions. While details remain under wraps, a growing willingness to compromise is evident. Whether all stakeholders ultimately agree remains uncertain, but optimism surrounds the possibility of finalising key issues in the next round of discussions.
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3 Comments
The Real Person!
The Real Person!
The outcome, decisions that arise out of these wage negotiations must not be worked principally, what is being “feed” into them – from the Orban led Fidesz Government of Hungary.
In all probability – the “Feed” of information, from a present Government, the Orban led Fidesz Government, that is in a gargantuan pressurized “place” delivering an economy to Hungary, an economic outlook, that is in “high risk” of collapse.
Orban and the Fidesz Government – in future economic forecasting estimates and expectations, across the broad spectrum, that is, the Economic and Financial “landscape” of Hungary, it is being confirmed, from “learned” brains – in Economics & Finance from both inside and outside of Hungary, that give strong indications, and have grave doubts associated to them, there obtainability.
Greater concern is the validity of “tabled” – Orban, the Fidesz Government data, a DEBT “riddled” government, that greatly lacks cohesion, the Economic & Financial “place” – the results or balance sheet, in the, forward estimates, the “expected” performance of Hungary.
Pictures being painted, voiced and written, the PROPAGANDA – that GROW’s coming out and from the Orban led Fidesz Government of Hungary, that in totality is PRESSURIZED, taking all measures to survive, that all information, non of greater IMPORTENCE for the FUTURE of Hungary, than predictions of Future estimates of the performance of Hungary – Economic and Financial – the budgeted EXPECTATION of the “sickly” worsening situation – that is the Hungarian Economy.
Reliability on the factuality of information received from this Orban led Fidesz Government of Hungary, must not be the DETERMINER – that comes out from the Permanent Consultative Forum.
The Real Person!
The Real Person!
What is the difference between the minimum wage and the guaranteed minimum wage? And I don’t mean the numerical difference, but who earns one and who earns the other, and why the difference? I’ve read the article at VG.HU and it still isn’t clear.
Dear Reader, the minimum wage in Hungarian is minimĂ¡lbĂ©r, while the guaranteed minimum wage is garantĂ¡lt bĂ©rminimum. The minimum wage is the wage below which you cannot currently be paid if you work 8 hours. No employee can receive less than this, regardless of job title, duties or qualifications. An employer must pay a guaranteed minimum wage (which is higher than the minimum wage) if the job requires at least a secondary qualification. It is important to note that it is not the education or training of the employee that should be taken into account in this case, but the job in question. I hope this helped you understand!