Minimum Wage Agreement 'Very Likely' by Late November

HR

Talks on next year's minimum wage rise are "going well" and an agreement could "very likely" be reached by the second half of November, state secretary for employment policy Sándor Czomba said on public radio on Thursday, according to a report by MTI.

Czomba said there wasn't "really a precedent" for sealing a minimum wage deal so early.

The prognosis of the VKF, a forum of employers, unions, and the government, points to a 10-15% increase in the minimum wages for skilled workers and unskilled laborers, he added.

Assuming average annual inflation of 6%, real wage growth is clearly expected, he said. The government will soon decide on a proposal by unions and employers to allow businesses to pay their workers a one-off HUF 100,000, exempt from payroll tax, he added.

The VKF is weighing wage development in the long term along with advantages and disadvantages, he said. For the two minimum wages to converge will require a horizon spanning years, he added.

Hungary's statutory monthly minimum wage was raised by 16% to HUF 232,000 for unskilled laborers and by 14% to HUF 296,400 for skilled workers on January 1.

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