Hungary’s minimum wage among the lowest in the EU – See how it measures up against its neighbours

The issue of minimum wages is a recurring topic in the European Union, as significant disparities exist between member states. At the beginning of 2025, Hungary’s minimum wage stood at HUF 288,087 (EUR 699), making it one of the lowest among EU countries. 

The Hungarian minimum wage is only higher than Bulgaria’s, where the legal minimum wage is HUF 227,763 (EUR 551). However, several neighbouring countries are ahead: for example, Romania’s minimum wage is higher at HUF 334,530 (EUR 810), Slovakia’s at HUF 337,608 (EUR 816), and the Czech Republic’s at HUF 341,538 (EUR 826).

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Source: depositphotos.com

The EU’s three groups based on minimum wages

According to HR Portál, EU countries can be divided into three main groups based on their minimum wage levels:

  1. Western European countries: These have minimum wages ranging from HUF 743,400 (EUR 1,800) to HUF 1,113,100 (EUR 2,700). This group includes Luxembourg, Germany, the Netherlands, Belgium, Ireland and France. These nations are not only among the wealthiest in the EU, but their practice of adjusting minimum wages is closely tied to inflation and economic growth.
  2. Countries with medium minimum wages: Here, wages range from HUF 392,350 (EUR 950) to HUF 578,200 (EUR 1,400). Examples include Spain, Slovenia, Cyprus, and Poland, which have achieved notable economic progress in recent decades.
  3. Countries with low minimum wages: In this category, wages fall below HUF 371,700 (EUR 900). Alongside Hungary, this group includes Bulgaria, Romania, Slovakia, Latvia, and the Czech Republic. Although these nations are among the EU’s less developed regions, the dynamic growth in Romania and Slovakia indicates potential for improvement.

Hungary and the region

Hungary’s situation is particularly striking when compared to its Central and Eastern European neighbours. By early 2025, Slovakia’s minimum wage had reached HUF 337,608 (EUR 816) and Romania’s was HUF 334,530 (EUR 810), while Hungary’s remained significantly lower. The Czech and Polish minimum wages were even higher, at HUF 341,538 (EUR 826) and HUF 453,054 (EUR 1,098), respectively.

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Photo: depositphotos.com

According to Portfolio, this disparity reflects not only the economic development of the country but also its GDP per capita and overall wage levels. While Hungary achieves 76.7% of the EU average in terms of purchasing power parity, the Czech Republic and Slovenia exceed 90%. This suggests that Hungary’s economy faces structural challenges that hinder faster wage growth.

The issue of Hungary’s minimum wage is further compounded by internal inequalities. For instance, while the average net income in Budapest was nearly HUF 500,000 (EUR 1,200) in 2023, the average in smaller towns barely exceeded HUF 296,000 (EUR 715), as reported byHaszon.hu. This income gap exacerbates the economic divide between regions within the country.

The future of the Hungarian minimum wage

Raising the minimum wage and enhancing regional competitiveness are crucial for Hungary. Although slower economic growth and high inflation present challenges to rapid change, the examples of neighbouring countries demonstrate that catching up is possible with appropriate economic policies. However, beyond raising the minimum wage, Hungary must restructure its economy, improve investment efficiency, and address inequalities to ensure sustainable growth.

Overall, Hungary’s minimum wage remains among the lowest in the EU, surpassed only by Bulgaria’s. Regional competitors such as Romania, Slovakia, and the Czech Republic are already ahead, highlighting the need for substantial reform in Hungary’s economic structure and wage policies. The low minimum wage not only impacts living standards but also poses a long-term challenge to the country’s competitiveness.

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Featured image: depositphotos.com

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