Employers, unions find shortcomings with minimum wage proposal

Telco

Business association VOSZ wants compensation if the government raises the minimum wage to HUF 92,000 a month, while unions association MSZOSZ wants more.

The National Economy Ministry said late Tuesday it wants to raise the basic minimum wage to HUF 92,000 and the minimum wage for qualified workers to HUF 108,000 a month.

At present, the basic minimum wage is HUF 78,000 and the minimum wage for qualified workers is HUF 94,000.

The ministry also proposed business raise wages by 5% next year and that a temporary tax be levied on incomes over HUF 202,000 a month.

Ferenc Dávid, chief secretary of VOSZ, told MTI late Tuesday that the increases in the basic minimum wage and the minimum wage for qualified workers calculate as 18% and 15%, respectively, while the economy is expected to grow no more than 1.5% next year. The private sector can only bear this wage burden if it is compensated by the state, he added.

Péter Pataky, chairman of MSZOSZ, told MTI that the minimum wage would have to be raised to HUF 92,520 next year if workers are to take home the same nominal net wage, taking into consideration the elimination of tax preferences and the practice of adding social contributions to the personal income tax base, as well as increased social contributions.

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