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May 02, 2018

Economy Ministry: Working in Hungary is becoming “increasingly worthwhile” thanks to tax cuts and pay rises

Hungary’s GDP growth rate of above 4 percent suggests that wages are likely to grow in the coming period, leading to increased employment and a continued rise in living standards

Working in Hungary is becoming more and more rewarding, the government has revealed.

The ministry for National Economy said in a statement that thanks to tax cuts and pay rises, working in Hungary was becoming “increasingly worthwhile”.

Official figures show that since 2010, the jobless rate has fallen by two-thirds to a historic low and real wages have been growing for over five consecutive years.

The ministry said that thanks to a wage agreement signed between representatives of the government and businesses in 2016 and 2017, the minimum wages for both skilled and unskilled workers rose by more than 10 percent at the beginning of 2018.

The ministry said that in addition to working on reaching full employment, the government’s goal is to ensure that workers feel the effects of Hungary’s economic growth.

MTI reveals that at the beginning of 2018, net wages calculated excluding family benefits were 56 percent higher compared with early 2010. At the same time, real wages rose by more than 32 percent and by more than 38 percent including family benefits over the past eight years.

What’s more, Hungary’s GDP growth rate of above 4 percent suggests that wages are likely to grow in the coming period, leading to increased employment and a continued rise in living standards.