Good news: Hungary’s minimum wage to hit new highs in 2025!

2025 will be a particularly important year for wages in the Hungarian economy. Wage increases, including a rise in the minimum wage, are expected to be broad-based across both the corporate and public sectors, with the aim of restoring the purchasing power of wages, particularly after the impact of inflation following the energy crisis in 2022.

In addition to wage increases, another positive development is that inflation could slow and even fall below 3% in the first months of the year, a level last seen in January 2021. This should help households to finally recover from the difficulties of recent years.

Changes in minimum wage

According to Világgazdaság, a key element of wage policy is the increase in the minimum wage and the guaranteed minimum wage. From 2025, the gross minimum wage will rise to HUF 290,800 (EUR 711), while the gross guaranteed minimum wage will increase to HUF 348,800 (EUR 852), resulting in a significant rise in net earnings.

This increase is part of a three-year wage agreement, by the end of which the minimum wage is expected to reach 50% of average gross earnings. By 2028, the minimum wage should reach €1,000 (HUF 409,000), and average gross earnings could approach €1 million (HUF 409 million). This will ensure stable wage growth in the long term, which could boost the economy as a whole.

After better-than-expected earnings growth last year, a slightly slower rate of wage growth—8–9%—is anticipated for next year. This aligns with increases in the minimum wage and the guaranteed minimum wage, along with a slowing inflationary environment.

It is important to note that median earnings, which provide a more realistic picture of earnings conditions, are growing even faster than the minimum wage. This reflects significant progress, especially at the lower end of the earnings scale. The purchasing power of wages is expected to increase by 4–5% by 2025, which should provide considerable relief to households after recent price rises.

The most affected

The government is addressing one of its biggest obligations by increasing the salaries of education workers. In the second phase of the three-year programme, teachers’ salaries will rise by an average of 21.2% from 1 January 2025, bringing the average teacher’s salary to HUF 844,000 (EUR 2,064) gross. The lowest salary for trainees will rise to HUF 640,900 (EUR 1,567) gross.