The government plans to broaden the range of the subsidy it offers employers who raise wages to compensate lower earners for tax changes, MTI Hircentrrum learnt.
The government aims to prevent anybody’s net wages from falling because of tax changes, public television broadcaster Duna TV said late Monday. To achieve this, workers who earn less than gross HUF 218,000 a month must be compensated because of the elimination of tax preferences.
At present, employers cover up to a 5% wage increase as compensation and the government pays for any rise over that. The exception is compensation for earners of the basic minimum wage and the minimum wage for qualified workers, which is entirely covered by the government.
Now the government wants to ensure sate support for employers who are unable to raise the pay of workers due compensation by even 5%.