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Nov 25, 2016

Hungary's wages to rise by 40 percent in two years

The government's new wage agreement applies to 1.2 million people, with one minister calling the deal "the greatest achievement of the past decade"

The Hungarian government has annonced that measures have been put in place to increase wages by 40 percent over the next few years.

János Lázár, the minister heading the Prime Minister’s Office, said that workers based in Hungary will receive the pay they deserve thanks to the government's new wage pact.

According to MTI, the agreement is augmented by government measures spanning several years ahead, Lázár said, and also noted a hike in the minimum wage combined with a cut in payroll taxes. The wage increases are partly contingent on full employment and a work-oriented society, he added.

The wage agreement is relevant to 1.2 million people, he said, calling the deal the greatest achievement of the past decade.

The wage deal was struck by the ruling Fidesz party rather than the left-wing opposition, which had done no more than talked “blah-blah about higher wages”. The significant strengthening of Hungary’s economy in recent years made the wage hikes possible, he added.

“Europe is weakening; its economic outlook is uncertain, while Hungary has a stable and completely clear economic situation,” Lázár said, adding that the government had settled the public finances.

Lázár said that “with parliament consent”, it was possible that a balanced budget could be passed in 2017.