Hungary is doing better also as regards pay rises. This is supported by the fact that in the past two years average earnings have increased by some 26 per cent in Hungary, Minister of State Sándor Bodó said at a press conference.
Thanks to the six-year wage agreement initiated by the government, earnings are continuously increasing both in the private and public sectors. Pursuant to the agreement, in 2017 the minimum wage increased by 15 per cent, while the guaranteed wage minimum for qualified workers by 25 per cent. In 2018, there were further 8 and 12 per cent pay rises in these two pay categories, respectively.
This trend will also continue this year as at the end of last year the government entered into a two-year wage agreement with its social partners. The minimum wage and the guaranteed wage minimum for qualified workers will increase by 8 per cent both from 1 January this year and 1 January 2020. Pursuant to the decision, this year the mandatory pre-tax minimum wage has increased to HUF 149,000, while the pre-tax guaranteed wage minimum has risen to HUF 195,000. Next year, the former will reach gross HUF 161,000, while the latter HUF 210,600 before tax, the Minister of State for Employment Policy and Corporate Relations confirmed.
This year the government is expecting a 9 per cent increase in pre-tax earnings, and an increase above 6 per cent in real wages, thanks to the low inflationary environment, he said.
Mr Bodó highlighted that on a EUR basis, the Hungarian gross minimum wage underwent the highest increase among the Visegrád countries (V4) after the Czech Republic in 2017 and 2018. During the same period, Hungary came first among the V4 countries as regards the rise in the purchasing power parity of earnings.
Compared with 2010, among the Visegrád countries, Hungary has implemented the highest minimum wage increase. At the same time, since 2010 Hungary has achieved the third highest minimum wage increase in the European Union measured on a purchasing power parity basis.
Mr Bodó stressed that “the government is making every effort to ensure that the earnings of Hungarian people may increase meaningfully, and that the financial situation of families may thereby further improve as this is equally beneficial for the country and society, and serves economic growth.”
(MTI / kormany.hu)
