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Gov't approves HUF 29.9 bln in wage compensation for public sector workers

The government has approved the expenditure of HUF 29.9 billion to finance wage compensation of public sector workers at central budget-funded organizations, a government resolution dated April 26 and published in the official gazette Magyar Közlöny shows.

The 2012 central budget earmarks HUF 64 billion for wage compensation to offset the adverse effect of tax changes on public sector employees' net income. The appropriation includes compensation for those on maternity leave.

The Central Statistics Office (KSH) said earlier that about 59% of full-time public sector employees were paid an average monthly HUF 10,700 in such compensation in January-February. The monthly budget expenditure during the period came to HUF 4.2 billion, Econews calculated. 

The compensation is designed to prevent a drop in the net wages of those earning less than about gross HUF 216,800 a month due to the elimination of employee tax write-offs and a one percentage point rise in the health insurance payroll tax.

The gross monthly average wage came to HUF 216,600 in February.