Employers & Unions in Hungary Sign Minimum Wage Agreement
- 22 Dec 2022 8:24 AM
- Hungary Matters
Representatives of employers and unions signed an agreement on next year’s minimum wage rise.
Under the agreement, the monthly minimum wage for unskilled labourers will rise by 16% to 232,000 forints (EUR 577), while the minimum wage for skilled workers will climb 14% to 296,400 forints (EUR 737) from January 1.
Around 730,000 people are paid the minimum wage for skilled workers, while 230,000 get the minimum wage for unskilled labourers.
Sándor Czomba, state secretary for employment policy, said feedback suggests across-the-board wages will rise over 10% in a number of sectors next year.
He acknowledged that the government had “far less room for manoeuvre” than in earlier years, when payroll tax cuts were coupled with the minimum wage rise.
He noted that the payroll tax had been scaled down from 28.5% to 13% between 2017 and 2022, adding that every percentage point reduction translated as a 400 billion forint decline in budget revenue.
XpatLoop Media Partner
LATEST NEWS IN finance