Photo by Arsenie Krasnevsky/

The pay increase will have retroactive effect from May 1, 2020. Fulfilling the terms of the agreement will cost Magyar Posta about HUF 6 billion this year.

The government is in talks with the European Commission on clearing state aid for Magyar Posta to cover the additional payroll costs.

On top of the pay raise, Magyar Posta earlier committed to pay its employees HUF 5.5 bln in performance bonuses, half in April and half in December.