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Feb 07, 2018

Hundreds of thousands of Hungarians will receive pay rises this month due to higher salaries that came into effect on January 1st

“In addition to the work of the Hungarian people, both the good performance of the Hungarian economy and the tax cuts are enabling these wage increases, and their effects are being reinforced by our family support schemes,” Csaba Dömötör said

The government has revealed that hundreds of thousands of Hungarians will receive pay rises this month due to the higher salaries that came into effect on January 1st.

“We are taking further important steps to ensure that it is worthwhile for everyone to work in Hungary and everyone’s work is duly appreciated,” Parliamentary State Secretary Csaba Dömötör said.

“In addition to the work of the Hungarian people, both the good performance of the Hungarian economy and the tax cuts are enabling these wage increases, and their effects are being reinforced by our family support schemes,” he added.

The minister also revealed that the minimum wage is 8 percent higher than it was last year and the minimum wage for skilled workers is 12 percent higher. He said law enforcement employees, military personnel and police officers will also be receiving higher salaries.

Furthermore, people employed in higher education and at state-owned companies, including postal and rail workers, will also be taking home more money, he said.

Dömötör said wage increases are not only occurring within the public sector, but also in the private sector, and this is because of the stable Hungarian economy and tax cuts.

“Personal income tax is still at a flat rate and taxes on employers were further reduced in January, and these measures are providing enterprises with more room for manoeuvre to increase wages,” he said.

The state secretary also said that family tax subsidies are increasing the level of take-home pay, and since the introduction of these tax benefits, some 1.9 trillion HUF (6.1bn EUR) has remained in the pockets of families with children. These benefits have now been increased further in view of the fact that families with two children will now be able to deduct 35,000 HUF from their taxes.