The guaranteed minimum wage may increase by 25 percent next year. In 2018, the minimum wage and the guaranteed minimum wage may rise by 8 percent and 12 percent, respectively, Minister for National Economy Mihály Varga said on Monday, following a session of the Standing Consultation Forum of the Private Sector and the Government.
In addition, the Government proposes a payroll tax cut of 2 percentage points annually for four years, beginning in 2019, provided wages in real terms rise by at least 6 percent per annum.
Thus, over the next six years, wage hikes in real terms could come to a total of as much as 40 percent. This, however, must not jeopardize economic performance, he warned. That is why next years’ wage hikes are linked to improvement in economic efficiency and competitiveness, he added. The Government wants this proposal to be a starting point for a final solution that every partner can agree with. Negotiations are to be continued in the coming days, he stressed. At the end of these, the Government wants to conclude a six-year agreement that provides a predictable, calculable path for everybody involved.
As National Federation of Workers’ Councils President Imre Palkovics said, trade unions were surprised to see that the Government has tabled a minimum wage and guaranteed minimum wage proposal that was higher than their prior targets.
Confederation of Hungarian Employers and Industrialists Vice President Ferenc Rolek said that these Government-proposed wage hikes on their own would place too large a burden on employers in 2017, therefore negotiations must continue concerning the size of increases.
(Ministry for National Economy)
