Minimum Wage Agreement Reached in Hungary

  • 5 Nov 2021 6:55 AM
  • Hungary Around the Clock
Minimum Wage Agreement Reached in Hungary
Employer organisations, unions and the government have reached an agreement on raising the monthly minimum wage to Ft 200,000 per month from Ft 167,400 and the minimum for skilled labour to Ft 260,000 from Ft 219,000 next year, the Innovation and Technology Ministry announced on Wednesday.

The final version of the agreement will be developed within days and the agreement can be signed by the middle of November.

According to the draft agreement, the government will continue to reduce the tax burden on labour, depending on the productivity, competitiveness and growth of the economy, also taking central budget considerations into account.

A minimum wage agreement is a routine decision in principle, but in Hungary this is also politicised, especially before the election year, Corvinus University professor Ákos Péter Bod remarked.

In the present economic environment, the increase in the minimum wage might fuel inflation, so in the end households will pay for it with higher prices, said analyst Péter Virovácz of ING bank.

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