Sándor Czomba, the state secretary for employment policy, said on public television on Tuesday that an agreement signed Monday on minimum wage increases over the next three years provides "security" and "predictability" for employees and employers.
The agreement shows "where we are and where we want to get to", Czomba said on news channel M1.
The deal, reached between employers, unions and the government, would raise the statutory minimum wage by 9pc in 2025, 13pc in 2026 and 14pc in 2027.
Czomba said the government aimed to raise the minimum wage to half of the gross average wage by 2027. By January 2028, the minimum wage should be around HUF 400,000/month, he added.
He acknowledged that just 211,000 Hungarians earned the minimum wage, but pointed to the impact of the statutory wage on other remuneration. He said businesses needed to improve their productivity to keep up with wage increases, adding that the Demjan Sandor Programme would support developments at SMEs.