Govt ups ante on minimum wage rise

Telco

The government’s proposal for next year’s basic minimum wage edged up to HUF 93,000 but it stood by its earlier proposal to raise the minimum wage for qualified workers to HUF 108,000 a month, state secretary Sandor Czomba revealed after a meeting of o the National Economy and Social Council on Monday.

The government said in September it wanted 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.

Mr Czomba said the government is recommending a 5pc overall wage rise next year. In the case of minimum wage earners, it is offering to compensate employers for the increase over 5pc, he added.

This compensation would add up to a hundred billion forint fiscal expenditure, he said, answering a question.

The government’s 2012 budget bill allocates HUF 84bn for the compensation.

A decree on the compensation will be drafted before Christmas, Mr Czomba said.

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Tech