Hungarian minimum wage is worth terribly little: even Romania is ahead of us
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The Hungarian minimum wage has not been very competitive compared to the rest of the European Union even before. But with the current brutal price rises and inflation, it is almost impossible to live on the Hungarian minimum wage.
Low minimum wage
2023 started with an increase in the minimum wage. The question is, however, how competitive the current HUF 232,000 is with the minimum wages in other European countries, Pénzcentrum writes. According to the newest data of Eurostat, it is not competitive at all, to say the least. Calculated in euros, even the Romanian and Slovakian minimum wages are higher than those in Hungary. (The Hungarian minimum wage of HUF 232,000 is now EUR 595, but Eurostat’s data is different because of the strengthening of the forint.)
Three groups considering minumum wages
22 of the 27 EU countries have a minimum wage, with Cyprus having just introduced it at the beginning of this year. However, there are huge differences in the amounts paid, according to a recent Eurostat report. The minimum wage is the lowest in Bulgaria (EUR 399) and the highest in Luxembourg (EUR 2,387). When measured in euros, the countries can be divided into three groups, according to Pénzcentrum. These three groups are the following:
- The first group includes Member States where the minimum wage exceeds EUR 1500 a month. Countries such as Luxembourg, Germany, the Netherlands, Ireland and France are in this group.
- In the second group are the countries where the minimum wage is between EUR 1,000 and EUR 1,500 per month. This includes Slovenia and Spain.
- The third group includes countries where the minimum wage is less than EUR 1,000. This includes Cyprus, Portugal, Malta, Lithuania, Greece, Poland, Estonia, Czech Republic, Slovakia, Croatia, Latvia, Romania, Bulgaria and Hungary.
Minimum wage is always a contentious issue. Here in Canada we know that you have to work at least 60 hours each week to live comfortably and more to get ahead. Not just lawyers, doctors or CEOs do that, we who want nice homes & a bit of travel have to as well. That creates a lot of unbalance for people who have to work at 2 or 3 jobs to be able to get those hours in, like I always did as a single mother and even later as a young senior, who had to travel to take care of elderly parent every winter for 5 years. Many seniors still have to work to supplement their pension, and often minimum wage jobs are the only ones that they can get if they are not techy enough for modern business needs. With shortage of workers, companies are glad to have us!