ADVERTISEMENT

Minimum wage to rise 8% next year, as agreed earlier

Banking

The minimum wages for both skilled and unskilled workers will rise by 8% next year, in line with an agreement reached a year earlier between unions, employers and the government, Finance Minister Mihály Varga announced on Monday, according to a report by state news wire MTI.

A decree will be published in the official gazette setting the gross monthly minimum wage for skilled laborers at HUF 210,600 and the wage for unskilled laborers at HUF 161,000, Varga said.

The VKF, a forum of employers unions and the government, agreed a year earlier to raise the minimum wage for skilled and unskilled workers by 8% in both 2019 and 2020. However, unions recently pressed for the scale of next yearʼs increase to be raised, arguing that GDP growth had beaten expectations and pointing out that minimum wage growth is now under overall wage growth.

The minimum wage rise is part of a framework agreement reached between the sides pairing wage growth with payroll tax cuts. 

ADVERTISEMENT

Regional income disparities remain pronounced Analysis

Regional income disparities remain pronounced

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.