Dynamic wage growth expected in coming years in Hungary, Orbán cabinet believes
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The minimum wage will grow by 9 percent, 13 percent and 14 percent in the next three years, and the minimum wage for skilled workers will increase by 7 percent next year, so wage growth will be dynamic alongside the projected 3-4 percent inflation, Sándor Czomba, the state secretary for employment policy, said on public Kossuth Rádió on Sunday morning.
Real wage growth also expected increasing consumption
Real wages are also expected to increase, he added, and that will be reflected in consumption and households. The fact that the three-year wage agreement was concluded in the current uncertain global economic conditions “has a very important message” for the market, the economic, employees and households, he added.
Czomba said employers initially offered an average ten percent increase of the minimum wage, while employees wanted a twelve percent raise on average. With both paths, it would have been possible for the minimum wage to reach 50 percent of the regular gross average wage by 2027, but the wage dynamics can only be maintained and increased with the higher figure, he said.
