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Gov't in push to determine wage compensation

Hungary’s government would determine the extent of wage compensation companies will be expected to give to their employees who are left worse off by personal income tax changes from next year, according to an amendment submitted to a bill put forward in the Parliament earlier this week.

The amendment would authorize the government to specifically state the details of the compensation. The aim is to avoid companies paying the compensations by reducing other elements of the wage.

The initial bill would authorize the government to establish the amount of compensation it expects companies to pay employees who were left worse off by tax changes.

The authorization would apply starting 2012. The tax changes planned for next year would result in lower net wages for employees who earn less than gross HUF 300,000 a month.