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Gov’t to speed up compensation of private sector salary losses

The government is planning to step up compensation in the private sector so that recent revisions to the tax system will not lead to employees earning less than before, the prime minister’s spokesman Péter Szijjártó said in an interview with the public television.

Szijjártó said the government has already made sure that public sector employees will not experience a reduction in their wages because of the changes and has also agreed with the national conciliation council OÉT on the introduction of a heightened minimum wage. He accepted that in order for the measures to take effect some five to six months could well elapse, but the process must be drastically accelerated.

The introduction of a single-bracket personal income tax regime and the review of benefits entailed that many, especially childless couples earning less than HUF 300,000 a month are worse off than before.

Responding to these reports, Prime Minister Viktor Orbán said the situation is “unacceptable”, and announced the creation of a task force dedicated to enforcing the government’s promises that the new tax rules will not leave anyone making less. (BBJ)