money

Median wage shockingly low, half of the Hungarians get less than EUR 875/month net

Hungarian forint

The average gross wage in Hungary rose 12.5pc year-on-year to HUF 627,400 in September, data released by the Central Statistics Office (KSH) on Friday show. However, the median wage is still very low compared to other Central European countries since it barely reaches EUR 873.

Net wages climbed at the same pace to HUF 417,200.

Real wages rose 9.2pc, calculating with September CPI of 3.0pc.

The gross median wage increased 15.5pc to HUF 519,500. That is HUF 359,100 net, which is currently EUR 873. Half of the Hungarians received less money than that after working for a month.

Hungarian forint media wage shockingly low
Photo: depositphotos.com

Hungary’s statutory monthly minimum wage was raised by 15pc to HUF 266,800 for unskilled labourers and by 10pc to HUF 326,000 for skilled workers from December 1.

Excluding Hungarians working full time in fostered work programmes — who earned on average gross HUF 132,300 in September — the average gross monthly wage was HUF 637,300.

The average gross wage in the business sector, which includes state-owned companies, rose 11.9pc to HUF 630,700. The average gross wage in the public sector climbed 14.1pc to HUF 612,100. In the non-profit sector, the average gross wage increased 14.0pc to HUF 638,600.

For the period January-September, gross wages averaged HUF 633,500 and net wages came to HUF 421,300, both up 13.7pc from the same period a year earlier.

Hungarian economy struggling

Investment volume in Hungary declined 15.4pc year-on-year in the third quarter, data released by the Central Statistics Office (KSH) on Friday show.

Adjusted for seasonal effects, investment volume fell 14.9pc.

Hungarian economy worker industry
Hungary’s economy is struggling. Economy development minister Márton Nagy believes the reason is the struggling of the German economy. Therefore, we should “forget about the Germans” and the economic growth in Hungary in 2025 will be above 3%. Photo: MTI

Investment volume in the manufacturing, logistics and education sectors contributed the most to the headline decline, KSH said. The fall was mitigated by rising investment volume in the real estate and energy sectors, it added.

In a quarter-on-quarter comparison, investment volume edged down a seasonally-adjusted 2.5pc.

Read also:

  • Official: Minimum wage in Hungary to rise in 2025 – read more HERE
  • Forint in free fall, historic lows against the American dollar, GBP, CHF, PLN! – details in THIS article

Featured image: depositphotos.com

Shocking: Forint in free fall, historic lows against the American dollar, GBP, CHF, PLN!

national bank forint nbh new governor

The considerable strengthening course of the American dollar following the victory of Donald Trump makes it hard for the emerging currencies to keep up. Since the Eurozone PMI hit a 10-month low, the euro started to fall against the dollar, worsening the above-mentioned situation. However, the forint performs badly not only against the dollar. The Hungarian currency reached a historic low against the Swiss franc (CHF), the pound sterling (GBP), and even the Polish zloty (PLN).

According to portfolio.hu, the last time the euro was this weak was in November 2022. In October 2022, the forint reached an all-time historic low against the American dollar and the euro. However, thanks to the intervention of the Hungarian National Bank increasing the base rate sky-high, the Hungarian forint’s free fall could be stopped.

Now, the forint exceeds new historic lows against the USD, GBP, CHF and PLN daily.

Hungarian forint historic lows
Photo: FB/MNB

Historic lows against the American dollar, GBP, CHF, PLN

Currently, the Hungarian currency stands at 395.5 against the American dollar. The last time the forint’s depreciation reached such a shocking level against the American currency was in December 2022. The all-time historic low against the dollar was 435.5 on 8 October 2022.

Prospects are grimmer in the case of the Swiss franc. Following the conversion of CHF loans to forint, Hungarians do not follow the exchange rate changes of the CHF. Data show that the last time the Swiss franc was so strong against the forint was in September 2022 with HUF 437/1 CHF. Now, the exchange rate is at an all-time historic low above HUF 444/1 CHF.

forint historic lows
Photo: facebook.com/jegybank

The forint reached an all-time low against the pound sterling in November as well. Currently, the exchange rate is above 495.5. On 10 December 2022, it stood at 487.1. However, the current all-time historic low is the consequence of a constant and gradual weakening, while the 2022 low was just a swing since on 17 December 2022, the exchange rate was “only” 464.

HUF GBP
Source: Google.

Concerning the regional currencies, the Polish zloty also performs better against the forint and stands at a historic high with HUF 94.7/PLN 1 at the moment, even though the strengthening of the dollar is bad news for all emerging currencies like the Polish zloty.

Hungarian forint national bank central bank governor Matolcsy historic lows
György Matolcsy, the governor of the Hungarian National Bank. Photo: FB/MNB

Forint eases on interbank forex market

The forint traded at 411.37 to the euro around 10:00 in the morning on Friday, edging down from 411.06 late Thursday. The forint weakened to 394.00 from 391.96 against the dollar. It slipped to 444.13 from 442.35 to the Swiss franc, the MTI wrote.

BUX rises in early trade

The Budapest Stock Exchange’s main BUX index was up 0.29pc at 79,460.46 about 15 minutes after the opening bell on Friday. OTP Bank edged up 0.09pc to HUF 21,620 and oil and gas company MOL rose 0.37pc to HUF 2,686. Pharma share Richter climbed 0.37pc to HUF 10,850 and Magyar Telekom advanced 0.98pc to HUF 1,240. The BUX finished the session on Thursday up 0.17pc. Turnover reached HUF 11.3bn, MTI added.

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Hope for a little boy battling the incurable disorder DMD: Dusán’s family seeks support for experimental treatment

Dusán DMD foundation

At just 11 months old, Dusán’s family received the devastating news: their young son had been diagnosed with Duchenne muscular dystrophy (DMD), a rare and incurable genetic disorder that leads to progressive muscle weakness and damage. After weeks of uncertainty, the diagnosis came as a shock. DMD, which primarily affects boys, is caused by a mutation in the dystrophin gene, responsible for the stability of muscle cells. The disease gradually weakens the muscles, and while there is currently no cure, research is underway for potential treatments.

Dusán’s birth on 7 September 2020, coincided with World Duchenne Day, and his name almost mirrors the pronunciation of the disease, symbolising a connection to his ongoing battle, ICT Global writes.

A ray of hope: Seeking experimental treatment for DMD

Dusán DMD foundation
Dusán. Photo: Dusán Világáért Foundation

Over the past three years, Dusán’s family has explored every possible option to give him the best chance at life. Despite visiting over 20 clinics and pharmaceutical companies worldwide, many of which offered no answers, hope emerged from an unexpected place: an experimental therapy in Europe. The family now faces the difficult decision to uproot their lives and move to Belgium, where Dusán can participate in a pioneering treatment, which is still in its early stages.

The experimental treatment, though promising, is not risk-free.

“It is risky to undertake an experimental treatment as we are about to begin a therapy whose long-term effects are still not fully known. However, we are doing this not only for Dusán but also for the entire DMD community, to help advance the understanding and treatment of this disease,”

said Zalán, Dusán’s father.

Financial struggle: Help needed for treatment costs

The experimental treatment is expensive, and the family is seeking financial support to cover the costs of moving abroad and sustaining their lives there. With the necessity of leaving their jobs and daily life behind, the family faces significant financial burdens. As part of their support, businesses are encouraged to contribute resources, which can also be reflected in their ESG (Environmental, Social, and Governance) reports.

“We have accepted the terms of the contract, and Dusán has already been participating in preliminary research and trials for over a year. The treatment is a costly alternative to gene therapy, which very few people have access to. We need EUR 120,000 to cover the costs at the start, ensuring we can provide everything Dusán needs to continue his treatment and stay abroad,”

said Zalán.

A life-changing opportunity

Dusán DMD foundation
Photo: Dusán Világáért Foundation

Dusán’s participation in the experimental therapy could begin around Christmas, with the potential to significantly improve his quality of life. “If successful, this treatment could not only improve Dusán’s condition but also buy us time to develop second-generation drugs. This would offer hope for many children and families affected by this disease,” Zalán added.

Dusán Világáért Foundation: Supporting the mission

To further support Dusán’s fight, the Dusán Világáért Foundation has been established. Its mission is to provide Dusán with the best chance at healing and living a full life by financing the treatments and tools that will enhance his quality of life.

Support the Cause:

Individuals and businesses can contribute to Dusán’s treatment fund, which is critical to covering the next few years of international medical care. The foundation’s target amount is HUF 50 million (EUR 120,000), which will help cover the costs of Dusán’s overseas treatments.

If you would like to help, donations can be made to:

Dusán Világáért Foundation Account Number:
10300002-13839299-00014902 (IBAN: HU97 1030 0002 1383 9299 00014902)

Dusán Világáért Alapítvány 2234 Maglód, Árpád vezér utca 61 /3

Every contribution, no matter how small, makes a significant difference.

Official: Minimum wage in Hungary to rise in 2025

forint wage growth salary money minimum wage

The minimum wage will rise by 9% in 2025, by 13% in 2026 and by 14% in 2027, Sándor Czomba, the state secretary for employment policy, said at an event on Thursday.

Czomba noted that the minimum wage would rise by 12% on average in the next three years. The minimum wage for skilled labourers would increase by 7% next year, he added. It wasn’t easy, but an agreement on wages has been reached by the representatives of the government, employers and unions, he said. With the wage increases the government wants to see the minimum wage reach 50% of the average wage by January 1, 2027, he added.

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Featured image: depositphotos.com

Hungary launches EUR 500,000 humanitarian aid for persecuted Christians through Hungary Helps programme

Hungary helps persecuted Christians

The government has launched a new humanitarian aid worth EUR 500,000 within the framework of its Hungary Helps programme, aimed to support persecuted Christians, the foreign ministry’s state secretary in charge of the programme said on Thursday.

Since its launch seven years ago, the programme has provided financial support to over two million innocent people persecuted for their faith for humanitarian, education, reconstruction and development purposes, Tristan Azbej said. “This commitment has not stopped this year either,” he said.

Boglárka Illés, the foreign ministry’s state secretary in charge of bilateral relations, said the programme targeted Nigeria, Burkina Faso and Pakistan.

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Confirmed: Major Hungarian bank announces significant fee increases

signing contract hungarian bank

A major Hungarian bank, Raiffeisen is overhauling its account packages, introducing a new “Active Account” that comes with significantly higher fees to reflect upcoming transaction levy hikes. Existing customers can avoid these changes for now, but they may soon face similar increases as other banks in Hungary also prepare to raise their fees in 2025. With tighter conditions and higher costs, Raiffeisen’s move marks a notable shift in the Hungarian banking landscape.

According to Világgazdaság, Raiffeisen Bank is introducing a new account package with significantly higher fees. The bank is also the first in the Hungarian market to apply the levy increase by introducing a new bank account package with the new levy rate. Existing customers won’t be affected immediately, but changes are likely to come their way in the near future.

The new “Active Account” package

Starting today (21 November) at 6 PM, Raiffeisen will stop offering its current account packages and replace them with the new “Active Account”. This move allows the bank to incorporate the higher transaction levies that come into effect in January 2025. While current packages remain untouched for now, customers have until today to switch to these before they’re phased out.

Raiffeisen Bank office budapest
Photo: Raiffeisen.hu

The new “Active Account” comes with perks like free monthly fees under specific conditions: either receiving a net minimum wage transfer or making at least ten transactions totalling half the gross minimum wage. However, these conditions are promotional and will tighten after May 2025.

Substantial fee increases

The “Active Account” introduces fee hikes across the board:

  • Transfer fees: Free for amounts up to HUF 50,000 (EUR 122) per transaction until May 2025; above this, customers will pay dual fees, up to 0.45%.
  • SMS service: Monthly fees rise from HUF 171 to HUF 250 (EUR 0.42 to 0.61), with SMS charges increasing by 18%.
  • Cash withdrawal: Minimum fees jump from HUF 880 to HUF 1,500 (EUR 2.14 to 3.65) at non-Raiffeisen ATMs or post offices, making smaller withdrawals more costly.
  • Card services: PIN code replacement costs soar, and branch card collection fees skyrocket from HUF 3,887 to HUF 10,000 (EUR 9.45 to 24.31).

Broader impact among Hungarian banks

Although existing customers aren’t immediately affected, analysts suggest the fee increases will eventually apply to older accounts, likely by mid-January. Other major banks, including OTP, K&H, and CIB, have already announced similar adjustments starting in early 2025.

Raiffeisen’s innovative yet controversial approach could signal a shift in how Hungarian banks manage regulatory cost increases, leaving customers with few options but to absorb the rising fees.

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Featured image: depositphotos.com

Hungarian policy makers leave base rate on hold at 6.50pc

Daily News Hungary Logo Új

The Monetary Council of the National Bank of Hungary (NBH) decided to leave the central bank base rate unchanged at 6.50pc at a monthly policy meeting on Tuesday.

Unchanged base rate

The policy makers left the base rate on hold at the previous meeting, in October, too.

The Council also left the O/N deposit rate at 5.50pc and the O/N collateralised loan rate at 7.50pc. The rates mark the ends of the central bank’s symmetric interest rate corridor.

In a statement released after the meeting, the Council said the increase in risk aversion towards emerging markets posed an upside risk to domestic inflation, while the interest rate paths of the biggest central banks were still “surrounded by uncertainty” and the external interest rate environment could ease “more slowly than previously expected”.

“In the current macroeconomic environment, the [NBH] can make the most effective contribution to the easing of economic agents’ increased precaution and to the restart of economic growth by preserving price stability and maintaining financial market stability,” the policy makers said.

“Restrictive monetary policy contributes to the maintenance of financial market stability and the achievement of the inflation target in a sustainable manner by ensuring positive real interest rates,” they added.

The Council said decisions on the level of the base rate would be taken in a “cautious and data-driven manner” based on the incoming macroeconomic and financial market data.

At a press conference after the meeting, deputy-governor Barnabás Virág said the Council had kept the base rate on hold in accordance with a “stability-oriented” approach. The current environment continues to require a “disciplined, restrictive and patient” monetary policy, he said. If warranted by the external environment and inflation outlooks, the base rate could remain at the current level for an “extended period”, he added.

He said that the central bank was ready to hold FX swap tenders and discount bill auctions and use long-term instruments to “smooth” financial market movements at the end of the year.

He said foreigners’ short positions had increased, while the stabilising behaviour of the domestic sector had mitigated the weakening of the forint. The Council continues to monitor closely factors behind the weakening of the forint, he added.

Keeping the base rate on hold was the only option discussed at the meeting and it was supported by a “large majority” of Council members, he said.

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National Bank of Hungary introduces HUF 50,000 coin

National Bank of Hungary introduces HUF 50,000 coin

The National Bank of Hungary is set to release a remarkable gold collector coin, ‘V. László aranyforintja’ (The Golden Florin of Ladislaus V), on 20 November 2024. This stunning addition to the medieval Hungarian gold florin series comes in standard and piedfort versions—the latter weighing four times as much as a regular coin. Designed by sculptor Tamás E. Soltra, the coin will also be available in a non-ferrous version, making it an enticing piece for both collectors and history enthusiasts.

National Bank of Hungary releases new breathtaking coin

As Pénzcentrum reports, the National Bank of Hungary launched its ‘Hungarian Gold Florins from the Middle Ages’ series in 2012, beginning with the gold coin of Charles I, to showcase the high-quality medieval Hungarian currency that retained value and gained international acceptance. Subsequent coins have honoured notable figures, including Louis I, Queen Mary, Sigismund, and John Hunyadi, with the latest, ‘V. László aranyforintja’, set for release in 2024. Reflecting Hungary’s monetary heritage, these coins are issued in both gold and non-ferrous versions, sharing the same design but differing in denominations.

The obverse

As MNB writes, The obverse of the ‘V. László aranyforintja’ collector coin, issued by the National Bank of Hungary, features the reverse design of the gold forint originally minted by King Ladislaus V. At its centre is the figure of Saint Ladislaus I of Hungary, depicted holding a short-handled poleaxe and a globus cruciger, framed by an inner border. The outer edge displays a beaded border and the inscription ‘MAGYARORSZÁG’ (HUNGARY) at the top, while the coin’s denominations, ‘50000 FORINT’ and ‘3000 FORINT’, are elegantly separated by floral motifs.

National Bank of Hungary introduces HUF 50,000 coin
Photo: MNB

The reverse

The reverse of the ‘V. László aranyforintja’ collector coin, issued by the National Bank of Hungary, features King Ladislaus V seated on a throne, inspired by an engraving from the 1488 Thuróczy Chronicle. The design includes the King’s coat of arms below the throne, the mint mark ‘BP.’ and the minting year ‘2024’ on the left, and sculptor Tamás E. Soltra’s mark on the right. Encircled by a beaded border, the legend ‘V. LÁSZLÓ 1453–1457 ARANYFORINTJA’ (LADISLAUS V 1453–1457 GOLDEN FLORIN) completes this intricate tribute to Hungary’s rich numismatic heritage.

National Bank of Hungary introduces HUF 50,000 coin
Photo: MNB

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Orbán cabinet: Hungary can receive 6.61 billion euros from the EU in 2025

euro money chinese loan fine

An agreement on the 2025 EU budget was reached after “intensive discussions”, Péter Benő Banai, a state secretary at the Finance Ministry, said after a meeting of EU finance ministers in Brussels early Saturday. He added that Hungary could receive 6.61 billion in 2025 on development programs accepted by the European Parliament before.

Banai, who represented the Hungarian presidency of the Council of the EU at the ECOFIN meeting, said the 2025 budget contained EUR 199.4bn of total commitments and EUR 155.2bn of total payments.

He added that the agreement secured financing for programmes that enhance the EU’s competitiveness as well as financing for reconstruction after flooding in Central and Eastern Europe and Spain.

The budget follows the principal of “budgetary prudence” which means that there will be “flexibility” in 2025, Banai said.

Banai added that the European Commission could transfer EUR 6.61 billion for Hungary in 2025 on programs the European Parliament accepted and for aims defined by the Hungarian government.

6.61 Billions of euros
Photo: pixy.org

Read also:

  • OLAF to investigate EUR 1.8 million luxury mini nursery in Hungary

National Bank of Hungary issues a new forint coin – Here’s how it looks

National Bank of Hungary issues a new forint coin

The National Bank of Hungary celebrates 100 years of paediatric care with a stunning commemorative coin honouring the Hungarian Society of Paediatrics and its dedication to children’s health.

New coin issued by the National Bank of Hungary

As mnb shared, the National Bank of Hungary has unveiled a commemorative coin to mark the centenary of the Hungarian Society of Paediatrics. Presented at the Society’s jubilee general meeting in Debrecen, the non-ferrous metal coin, with a face value of HUF 3,000, is the creation of artist Andrea Horváth. This initiative honours the Society’s contributions to child health and welfare since its inception on 14 December 1924.

While the coin holds legal tender status, its intended value lies in commemorating this milestone and raising awareness of paediatric care. The coin is made of an alloy of copper (75%), nickel (4%) and zinc (21%), weighs 16 grams, has a diameter of 34 mm and a notched edge. In addition, the coin is a limited edition with only 10,000 pieces.

Hungarian Society of Paediatrics

The Hungarian Society of Paediatrics, founded by prominent figures such as Ármin Flesch, Pál Heim, and Ferenc Torday under the leadership of János Bókay, has supported the health of over 15 million children over the past century. Remaining steadfast in its principles of science-based medicine, safeguarding children’s health, and fostering a professional community, the Society continues to play a pivotal role in paediatric care. The National Bank of Hungary‘s commemorative coin further underscores these values, highlighting the Society’s enduring impact.

National Bank of Hungary issues a new forint coin
Photo: mnb.hu

The front of the coin

The National Bank of Hungary has released a commemorative coin celebrating the centenary of the Hungarian Society of Paediatrics, showcasing its legacy in advancing science-based child healthcare. The front of the coin highlights the Society’s therapeutic mission with a phonendoscope resting on two textbooks, alongside the inscriptions “HUNGARY,” “3000 FORINT,” the year “2024,” and the mint mark “BP.” The design, crafted by artist Andrea Horváth, includes her master mark on the spine of one of the books, symbolising precision and expertise.

The back of the coin

On the back, the coin features a doctor examining an infant, a nod to the Society’s official emblem and its commitment to paediatric care. Encircling this central motif are inscriptions of the Society’s full name and its motto, “100 YEARS OF CARING FOR CHILDREN,” connected by heart motifs to symbolise compassion. The commemorative coin underscores the National Bank of Hungary’s dedication to highlighting significant contributions to child health and family support over the past century.

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PHOTOS – Biggest Hungarian steelworks in severe trouble: Orbán cabinet pays wages

Dunaújváros steelworks

The government has paid the October wages of employees at steelmaker Dunaferr after owner Liberty Steel failed to, the National Economy Ministry said on Friday. The steelworks is in big trouble.

Around HUF 2bn in wages were paid to close to 3,500 employees from the Wage Guarantee Fund. The ministry said Liberty Steel had failed to fulfill its obligations, both with regard to pledged developments at the Dunaújváros steelworks and the restart of production.

Since June of 2023, Dunaferr has received a total of HUF 17.6bn of government support, it added. Liberty Steel acquired the Dunaújváros steelworks in a liquidation procedure.

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Hungarian car seller AutoWallis concludes historic agreement buying Czech competitor

Hungarian car seller AutoWallis concludes historic agreement buying Czech competitor

Listed Hungarian car seller AutoWallis on Friday announced an agreement to buy 100pc of Czech peer MILAN KRAL GROUP, in the company’s biggest acquisition to date.

The transaction further bolsters AutoWallis’s presence in Czechia’s “generally more profitable” market, the company said. It added that new car sales in Czechia were over 244,000 in 2023, nearly double the number in Hungary.

Revenue of MILAN KRAL GROUP was the equivalent of HUF 50bn in 2023, compared to AutoWallis Group’s turnover of HUF 366bn. MILAN KRAL HOLDING sells and services the BMW, Mercedes-Benz, Mercedes-Benz Truck and Ford brands, and services the Opel brand. It also has its own used car business under the brand auto.pro.Tebe.

Hungarian car seller AutoWallis concludes historic agreement buying Czech competitor
Photo: FB/Autowallis

The transaction is expected to close in December, pending approval by the Czech competition authority and the fulfillment of other conditions.

In the summer, AutoWallis acquired another Czech retail business: Stratos Auto’s three BMW dealerships.

AutoWallis earnings fall on higher costs

Net income of listed car seller AutoWallis fell 54pc year-on-year to HUF 4.7bn in Q1-Q3 as acquisition-related costs weighed, an earnings report released on Friday shows. Revenue edged up 3pc to HUF 291.2bn. Revenue of the wholesale division fell 5pc to HUF 161.3bn, while revenue of the retail business climbed 16pc to HUF 123.6bn.

Cost of goods sold inched up 2pc to HUF 240.6bn, nearly in tandem with sales, while cost of services increased 30pc to HUF 16.2bn, boosted by spending on marketing and acquisition-related costs. Payroll costs jumped 35pc to HUF 14.2bn as headcount climbed because of acquisitions and wage rises. CEO Gábor Ormosy said full-year sales were expected to exceed last year’s in spite of the current macroeconomic environment.

Read also:

  • German companies in Hungary worried about growing costs, decreasing consumption – read more HERE
  • Hungary’s 2025 budget to focus on housing support, family subsidies, and tax cuts, says minister

Attention! Wizz Air to impose more fines for oversized baggage

Wizz Air oversized baggage

“Focus on increasing baggage sales over the winter season, partly through improved monitoring of carry-on luggage,” Wizz Air states in a presentation about the Hungarian budget airline’s H1 financial results and H2 expectations. The presentation was prepared for the company’s investors. According to a Hungarian air travel news outlet, this could mean Wizz Air plans to increase scrutiny of oversized baggage and impose more fines on passengers with oversized items.

According to okosutas.hu, the statement above can be interpreted as a promise to investors that Wizz Air will boost revenues by introducing stricter monitoring of oversized luggage and levying more fines on passengers. As a result, the airline’s income is expected to rise.

Wizz Air oversized baggage
Source: depositphotos.com

The Hungarian news outlet recalled that prior to the COVID-19 pandemic, Wizz Air enforced much stricter baggage policies. Between 2016 and 2017, passengers were fined for luggage exceeding size limits by as little as 1 mm. Currently, airport staff primarily penalise baggage that is visibly oversized. However, the outlet speculates that a return to the previous, more rigorous approach may be in store.

Wizz Air focuses customer satisfaction

On a more positive note, Wizz Air’s presentation also highlighted efforts to improve the customer experience. The airline has stated its aim to “proactively mitigate the impact of cost inflation across our network” and implement a ‘Customer First’ initiative during the less busy winter season. This initiative focuses on reducing delays and enhancing the overall passenger experience.

Wizz Air oversized baggage
Source: depositphotos.com

Despite these reassurances, Okosutas.hu wryly wonders if the stricter baggage fines will be issued with a friendly smile from Wizz Air staff.

Read also:

  • Wizz Air expands horizons: Direct flights from Budapest to 71 airports in 32 countries this winter! -read more HERE
  • Ryanair launches new flight between Budapest and stunning Spanish region near Valencia

Hungarian government introduces zero-interest loans for young Hungarian workers as part of new economic policy

forint hungarian central bank minimum wage loans

The National Economy Ministry on Wednesday announced the launch of public consultations on a government scheme to offer young Hungarian workers zero-interest loans.

The ten-year loans up to HUF 4m (EUR 9,800), available to working, non-graduates between the ages of 17 and 25, will be available from the start of 2025. The scheme could support career starters with around HUF 500bn, the ministry said.

Borrowers must work at least 20 hours a week, under contract or as an entrepreneur. They must also pledge to continue to work in Hungary for a period of at least five years.

Women who take out the loans will get a two-year grace period after the birth of their first child. Half of the loan’s principal will be forgiven after the birth of a second child and the full amount after the birth of a third.

The scheme is part of the government’s New Economic Policy Action Plan which seeks to boost Hungarians’ purchasing power, ensure affordable housing and scale up SMEs.

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Featured image: depositphotos.com

Survey: Majority of Hungarians back government plan to raise average wage to EUR 2450

forint money currency Hungarian wages minimum wage

74 percent of respondents in a recent survey reacted positively to government plans to gradually increase the average gross wage to HUF 1 million (EUR 2,450), pollster Real-PR 93 told MTI on Wednesday.

Fully 19 percent, however, expressed a negative view concerning the government plans, the pollster said.

Among decided voters, 83 percent of ruling Fidesz supporters, 61 percent of people affiliated with the opposition Tisza Party, 64 percent of those supporting the leftist Democratic Coalition and 74 percent of radical Mi Hazánk expressed support for the planned pay rise.

Real-PR 93 conducted its phone survey between Oct 28 and 30 with a sample of 1,000 adults.

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Featured image: depositphotos.com

A lifetime of savings? Buying a home in Hungary became more challenging

Hungary house real estate village garden rent Hungarian real estate home in Hungary

Purchasing a 60-square-metre home in Hungary now demands countless years of dedicated savings for a couple on average wages. Here’s what is behind the insane price hike and what experts suggest to tackle the unfolding housing crisis in Hungary.

Significant price hikes

Pénzcentrum writes that over recent decades, housing subsidies, including Hungary’s CSOK and Baby loan (Babaváró hitel) schemes, have fuelled significant price hikes, making it increasingly challenging for average earners to afford a home in Hungary. While housing prices were relatively stable around 2010, the cost of new homes in Budapest has since surged by 3.6 times, with property prices more than tripling. National trends were similar, though property prices rose at a slightly slower rate. Experts suggest that renovating and reusing vacant properties could be a more cost-effective solution to Hungary’s housing crisis, offering potential relief for those struggling to secure home ownership.

Tihany Real Estate
Source: Pixabay

Shocking numbers

From 2010 to 2014, housing prices per square metre in Budapest and nationwide remained stable. However, the introduction of the CSOK subsidy in 2015 and the Baby loan in 2019 spurred a surge in demand for property, driving prices sharply upward. According to GKI analysis, this escalation means an average earner in Hungary would need 69 months of income to buy a 60-square-metre resale apartment and 155 months for a new one. In Budapest, these figures soar to 140 and 200 months, respectively, underscoring the affordability challenges of securing a home in Hungary.

For a couple on average wages, purchasing a home in Hungary is a lengthy endeavour. Saving 20% of their income, they would need over 14 years to buy an average pre-owned home, while a new home would take 32 years. In Budapest, the timeframe extends to 29 years for properties and 41 years for new ones, highlighting the affordability issues for many Hungarians, especially younger buyers with below-average earnings.

Hungary real estate market Budapest
Photo: facebook.com/bkkbudapest

A possible solution?

The time required to purchase a home in Hungary has remained relatively stable for resale properties nationally since 2015, but it has surged for new builds and Budapest homes. Meanwhile, the housing crisis is intensified by a substantial number of vacant properties: 572,000 homes (12.5% of the national housing stock) are empty nationwide, with 160,000 (28%) in Budapest alone. Many of these homes are in decent condition, yet remain unused. Renovating these vacant properties could offer a cost-effective solution to ease housing pressures, supporting more affordable home ownership options and boosting economic growth by leveraging existing infrastructure.

Read also:

OLAF to investigate EUR 1.8 million luxury mini nursery in Hungary

OLAF to investigate EUR 1.8 million luxury mini nursery in Hungary

After the Hungarian Integrity Authority’s investigations, the EU’s anti-fraud office is also getting involved in finding out details about a Hungarian luxury mini nursery’s high expenditure of EU funds.

OLAF starts investigation

Telex pointed out that the EU’s anti-fraud office, OLAF, has joined the Hungarian Integrity Authority in investigating a controversial mini nursery project in Nógrád County, Hungary. Funded with HUF 677 million (approximately EUR 1.8 million), the nursery provides just 12 places, a cost that independent MEP Ákos Hadházy has pointed out equates to HUF 56 million (EUR 136,337) per place. Hadházy brought the matter to the attention of the EU’s anti-fraud office in February, raising concerns about the high expenditure of EU funds on this project. He shared OLAF’s response, confirming the investigation, on his Facebook page.

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New corruption case on the horizon in Hungary? Prosecutors file charges against Schadl and 3 other suspects

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Prosecutorial investigators (KNYF) have filed charges against the former head of the Hungarian Chamber of Bailiffs (MBVK), György Schadl, and three suspected accomplices, accusing them of neglecting to report graft and influence-peddling.

Schadl-Völner case

Schadl is already under investigation on charges of corruption, property crimes and money laundering.

The current charges are against two independent deputy bailiff officers suspected of telling a bailiff applicant in August 2018 that they could influence the decision of the official in charge of making appointments “through their network of connections”, the KNYF said in a statement. They also suggested that the costs of opening an office for the person in question could be covered in exchange for handing over a percentage of the office’s revenues.

The applicant accepted the offer and agreed to pay each of the officers a 42.5 percent share of the revenues over a period of three years.

The appointment was scheduled to take place in the second half of 2019, according to the charges, but the applicant informed Schadl, in presence of his deputy, about the corrupt deal on the day he received his appointment papers, and Schadl ordered its termination.

Schadl and his deputy should have reported the matter to the authorities but neglected to do so, the KNYF said, adding that an investigation into the case was later ordered by the chief public prosecutor.

KNYF has asked for this case to be added to the ongoing investigation against Schadl and 21 other suspects on other corruption cases and other crimes, the statement said.

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