Following a meeting of a consultative body consisting of representatives of the Government, the National Association of Entrepreneurs and Employers (VOSZ) and the National Trade Unions' Association (MSZOSZ), an agreement was reached to raise the minimal wage from HUF 93,000 to HUF 98,000, and from HUF 108,000 to HUF 114,000 forints for skilled labour, from January next year. According to the calculations of trade unions, this will enhance purchasing power of families by 2.2%.

Additionally, gas, district heating and electricity prices will see a 10% decrease as of 1 January 2013. The process will be overseen by a committee including representatives of the Ministries of National Economy, National Development, Human Resources and the Prime Minister’s Office. The Spokesperson pointed out that since the sector’s privatisation in 1995, companies saw on average an annual 20% profit. On the other hand, he pointed out that between 2002 and 2010, consumer prices for gas rose by 200%, while in the case of electricity by 100%, adding that an average Hungarian household spends 30% of its income on utility bills. In Europe this number is generally under 10%.

With these measures the Government has begun to ease the financial burden on families, unprecedented in the past 20 years. Also, Parliament approved the 2013 central budget bill with 248 yes, 79 no votes and a single abstention. The budget calculates with 0.9% economic growth, envisages revenue of HUF 15,314 billion and expenditures of HUF 16,156 billion, with HUF 400 billion set aside as a precaution, determining the deficit at 2.7%.

It also earmarks HUF 300 billion for job protection, promoting the employment of unskilled workers, women returning from child-care leave, and those under 25 or above 55.

Source: kormany.hu