Hungary’s government has proposed increasing the national minimum wage and the guaranteed minimum wage from January 2027. However, employers remain opposed to the proposal, meaning negotiations between the government, trade unions and business representatives have yet to produce an agreement.
Tisza government to increase the lowest minimum income
The figures, by 7.5 per cent for the national minimum wage, and 6.5 per cent for the guaranteed minimum wage respectively, were announced following a meeting of the Permanent Consultation Forum of the Competitive Sector and the Government (VKF) on Tuesday.
According to trade union representative Tamás Székely, the proposal would raise the gross monthly minimum wage to approximately HUF 347,000 (EUR 950), while the guaranteed minimum wage would reach around HUF 397,000 (EUR 1,086), writes Klubrádió.
The guaranteed minimum wage applies to employees whose jobs require at least a secondary-level qualification or vocational training. Székely, a board member of the Hungarian Trade Union Confederation (MASZSZ), described the government’s offer as a realistic starting point for a compromise. He suggested that an agreement could be reached relatively soon if employers softened their position.
Take-home pay could rise by more than 10 per cent
Although the proposed gross increase is below 10 per cent, Székely said the rise in employees’ take-home pay could be considerably higher. Planned tax credits for 2027 could mean that the lowest-paid workers see a double-digit increase in their net earnings. He warned, however, that expectations of a double-digit increase in the gross minimum wage were unrealistic given Hungary’s current economic circumstances.
The trade union representative also argued against another multi-year wage agreement. He criticised the previous three-year deal, saying its commitments had not been fulfilled as expected and that it had created significant problems. In his view, an agreement covering only one year would be more appropriate because economic conditions, energy prices and fluctuations in the forint exchange rate make longer-term wage planning particularly uncertain.
Make things easier with professional support in English. Explore Daily News Hungary’s Services in English and find the help you need.
Employers remain reluctant to accept the offer
Employers have so far resisted the government’s proposal, despite the negotiating parties reporting some progress in narrowing their differences. Székely urged trade unions to persuade employers that the proposed increases represented an acceptable compromise. He also warned that raising the minimum wage and the guaranteed minimum wage would put pressure on salaries in higher pay brackets, potentially triggering further wage disputes.
The union representative suggested that tensions could intensify if employers offered increases of only zero to 2 per cent to workers earning above the minimum thresholds. Following Tuesday’s talks, the finance minister also confirmed that the parties’ positions had moved significantly closer, but stressed that no agreement had yet been reached.
The government’s stated objective is to ensure a substantial increase in the net minimum wage and guaranteed minimum wage from 1 January 2027. Further negotiations are expected before the parties reach a final decision.
Read also: Average net salary in Hungary’s richest settlement is more than 12 times the amount of the poorest
The minimum wage concept is one of those idea that look good on paper but is disastrous in reality. It violates the core and self-evident axiom that government interfering in the operation of the free market spells trouble.
How many times do retarded leftist policies have to be shown to be disastrous before humanity, especially the more intelligent among us, fully and finally disavow them?????