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Gov’t may offer companies incentive for wage compensation

The government may offer companies an incentive to compensate workers who take home less because of tax changes, Antal Rogán, who chairs Parliament's Economy and IT Committee, told MTI on Monday.

The incentive for companies who give their workers such wage compensation would come in the form of more favorable evaluations of applications for state funding, Rogán said.

The introduction of a flat rate 16% personal income tax and other tax changes effective from the start of can leave low-earners with less than before.

The government agreed with employers and unions at a meeting of the National Interest Coordination Council (OÉT) late in 2010 that such employees ought to be compensated for the drop in earnings. The parliamentary group of governing alliance Fidesz and KDNP set up a committee last week to monitor whether business sector companies are abiding by the agreement.