N

Hungary's minimum wage to increase by 4 percent from Feb. 1

The agreement struck by unions, employers and government representatives contains a further hike from the middle of the year.

 

A deal has been reached to hike the minimum wage by 4 percent from Feb. 1. The monthly minimum wage for unskilled workers before tax will rise from HUF 161,000 (EUR 450) to HUF 167,400, while skilled workers will receive HUF 219,000, up from 210,600.

According to MTI, the agreement struck by unions, employers and government representatives contains a further hike from the middle of the year to HUF 169,000 forints for unskilled worker and 221,100 forints for skilled employees.

Sándor Bodó, the state secretary for employment policy, said the deal hinges on cutting payroll tax by a further two percentage points to 13.5 percent. All three large employer associations and the three largest union groups signed the deal, while the MASZSZ union refused, saying the hikes did not keep pace with food price inflation.

Photo credit: Mandiner