Hungarian government to reshape minimum wage: Major changes by 2027

The Hungarian government is considering significant amendments to wage policies that could drastically alter the country’s minimum wage system, according to insider information obtained by Index. Although no formal agreement has been reached, two key regulatory changes are expected. These could potentially increase the minimum wage to 50% of the average wage by 2027. The National Economy Minister, Márton Nagy, had previously hinted at such a plan, and it now appears to be taking shape.

According to Index, negotiations are ongoing regarding next year’s minimum wage and the guaranteed wage minimum, but specific figures have yet to emerge from either employers or employees. Officially, about one million workers currently earn either the minimum or guaranteed wage in Hungary.

Hungary ahead of regional neighbours concerning effective minimum wage

In recent comments, Márton Nagy addressed concerns that Hungary ranks near the bottom of the European Union’s minimum wage rankings, emphasising that this comparison fails to account for the country’s unique wage system. Unlike other EU countries, Hungary also has a guaranteed wage minimum, which he claims offers a more accurate picture when combined with the standard minimum wage. According to Nagy, Hungary’s effective minimum wage is HUF 306,000 (EUR 777), placing the country 17th in the EU, ahead of regional neighbours like the Czech Republic, Slovakia, Romania, and Bulgaria.

Despite these relatively favourable standings, Nagy pointed out the need to narrow the gap between the minimum and average wages.

The government plans to raise the minimum wage to 50% of the average wage, with adjustments occurring in stages, and aims to achieve this goal by 2027.

Future of guaranteed wage minimum not yet clear

The rationale is to help low-income workers get closer to the national average, underlining the increasing importance of wage policy within broader economic discussions. Index reports that current talks have stalled due to disagreements over the future role of the guaranteed wage minimum. The government is weighing whether sectoral wage agreements could potentially take over this role, but for now, no comprehensive legislative overhaul is expected.

One significant change that could come soon is a government decree making the Versenyszféra és a Kormány Állandó Konzultációs Fóruma (Permanent Consultation Forum of the Competitive Sector and Government) the official body responsible for determining future minimum and guaranteed wages. Previously, this body played an advisory role, but it may soon have a formal mandate. Additionally, from 2025 onward, the minimum wage will be adjusted in relation to 50% of the average gross wage.