Imre Palkovics, who heads the workers council association Mosz, said that Mosz and unions associations Liga and Maszsz were proposing a 12% increase in the minimum wage for unskilled laborers and a 10% rise in the minimum wage for skilled workers.

Under a three-year wage agreement reached in November 2024, the minimum wage was set to rise by 13% in 2026, but Palkovics acknowledged that the increase would have to be modified in light of lower-than-expected GDP growth.

László Perlusz, the chief secretary of employers association Vosz, said GDP growth was exepcted to be 0.5% in 2025, well under the 3.4pc projected in the three-year agreement.

He added that Vosz was proposing a 9% minimum wage rise, but could accept a higher increase if payroll taxes were lowered.

Ferenc Rolek, who heads employers’ association Mgyosz, said a 10% minimum wage rise was a possibility if the government reduced the payroll tax.

Zoltan Zs Szőke, the chairman of Áfeosz-Coop, said the retailers association backed a 10% increase in the minimum wage for unskilled laborers and a 7pc rise in the minimum wage for skilled workers.

Perlusz said there was a “good atmosphere” at the talks on Tuesday and expressed hope differences could be ironed out by early November.