Minimum wage about to be raised in Hungary

Trade unions, employers and the government are currently engaged in negotiations to review the minimum wage and guaranteed minimum wage for the year. These discussions, facilitated by an agreement established in December, aim to address any significant deviations from the initial economic forecasts.

If agreed upon, there is a possibility of an unconventional increase in both wages as early as August or September. However, this needs a unanimous decision from the Permanent Consultative Forum (VKF) of the Competitiveness Sector (Versenyszféra) and the Government, writes Napi.hu.

Correction needed

Imre Palkovics, President of the National Federation of Workers’ Councils (Munkástanácsok Országos Szövetsége), highlighted the current state of salaries. In January, the minimum wage saw a 16 percent increase, with its gross amount rising to HUF 232,000 (EUR 627,63). Similarly, the guaranteed minimum wage experienced a 14 percent increase, growing to HUF 296,400 (EUR 801,71). However, inflation has surpassed the growth in minimum wages, necessitating a correction.

Unanimously, the trade unions stress the importance of maintaining the real value of the minimum wage. They advocate for a further increase from August, or at the latest, September. Imre Palkovics emphasised that a 4-5 percent correction would align the salary increase with inflation, resulting in an 18 percent annual growth.