New EU standard to come into force: Will minimum wage increase in Hungary?

The EU principle set to come into force in November this year aims to set the minimum wage at 60% of the gross median wage. Based on the latest figures for November, the minimum wage in Hungary, which was increased in December, is merely 43% of average gross earnings. Thus, an increase in minimum wage will most likely be require in Hungary.

An increase in minimum wage in Hungary?

Under a new EU directive set to come into force on 15 November 2024, EU countries must set the minimum wage at 60% of average gross wages. The EU will from then require a regular review of the minimum wage in line with the OECD, Euronews reports.

As of 1 December 2023, both the minimum wage for skilled workers (garantált bérminimum) and the minimum wage (minimálbér) have been increased in Hungary. The former rose to HUF 326,000 (EUR 841), while the latter to HUF 266,800 (EUR 688). However, thanks to the new EU rule introduced from November, the minimum wage in Hungary is likely to be raised again, Economx writes.

Minimum wage in other EU countries

In two-thirds of the EU, the gross minimum wage is below EUR 1,000, with a wide range from EUR 477/month in Bulgaria to EUR 2,571/month in Luxembourg. The only countries where the minimum wage exceeds EUR 2000 are Luxembourg, Ireland, the Netherlands and Italy, while 14 EU countries have minimum wages below EUR 1000.

Even with the December increase, the minimum wage in Hungary is in the lower third of the EU stats.