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Gov’t to spend HUF 120 bln raising wages at state-owned firms

The government will allocate HUF 44 billion in 2017 to raise pay at state-owned companies, to be followed by a HUF 48 bln allocation next year, and HUF 28.5 bln in 2019, János Fónagy, state secretary at the Ministry of National Development, said on Friday, as reported by Hungarian news agency MTI.

Salaries for 143,000 employees at 230 state-owned companies will gradually be raised 30% over the next three years.

Higher salaries will be applied retroactively from January 1 this year. The government wants state-owned companies to retain their competitiveness on the labor market in terms of wages.

Fónagy said the Ministry of National Development earlier already reached agreements with some companies under its management.

As reported earlier today, salaries for 36,800 employees at state-owned railway company MÁV will rise by 13% this year, 12% in 2018, and 5% in 2019, at a cost of HUF 13.6 bln.

Seven Volán regional bus companies and their 23,500 workers will get a 13% pay raise this year, followed by annual raises of 12% and 5% in ensuing years.

Salaries at postal company Magyar Posta will climb 14% this year, affecting 33,000 people and costing HUF 8.7 bln.

At regional water utility companies, the 13% pay raise for 10,500 people this year will require HUF 4.5 bln.

The affected companies will cover some of the costs of the raises, with Volán members spending HUF 617 million, Magyar Posta HUF 4 bln, and water utility companies HUF 100 mln.