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Jun 28, 2016

Hungarians set for further pay rises in 2017

Pay rises for state workers are made possible by the fact that the Hungarian economy now stands on solid foundations, is on a course for growth, inflation is low, the deficit of the budget is under control, and the sovereign debt is on the decrease

Hungarians are in line for further pay rises in 2017, thanks to a booming economy, Csaba Dömötör, minister of State at the Cabinet Office of the Prime Minister has said.

During a press conference, he said the government would like to show its appreciation to those who contribute to the advancement of Hungary, "with their dedication and hard work”, by rewarding them with a pay rise.

He highlighted that the scope for pay rises is created by the fact that the Hungarian economy now stands on solid foundations, is on a course for growth, inflation is low, the deficit of the budget is under control, and the sovereign debt is on the decrease.

At the same time, compared to 2010, more than 500,000 more people are in employment, and therefore the government is able to launch gradual pay rise programs in line with the increased capacity of the economy, he added.

Dömötör highlighted that wages have also increased in Hungary recently. During the period from January to April of this year, compared to the same period in 2015, pre-tax wages increased by 6.1 percent, while after-tax wages increased by 7.8 percent.

During the period ahead, members of law enforcement agencies, those working in government and district offices, judicial workers, teachers, higher education workers, crèche teachers, social workers, civil servants working in culture and healthcare workers can all expect higher salaries.

Law enforcement workers will receive a 50 percent pay rise, compared with last year, up to 2018.

The pay of the employees of district offices will increase as of July 1, while those working in government offices may expect higher salaries as of January 1, 2017. The other sector pay rises will all be implemented within the next 18 months.

This program will extend to 32,000 people in total, and the government has allocated 42 billion HUF for the initiative.