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Hungary: Gov’t agrees to compensate civil servants

  The government has said it will compensate public sector workers for scrapping annual bonus payments in 2009, state secretary at the Prime Minister’s Office Gábor Csizmár said after talks with unions on Monday.

 

Several thousand civil servants demonstrated in front of Parliament on Saturday against plans to freeze their wages and scrap their annual bonuses in 2009. The government proposed to the unions paying compensation up to HUF 140,000 ($675) per employee, which means public sector workers will lose only about one-third of their annual bonuses, Csizmár said.

Annual bonuses in Hungary are usually equivalent to a month’s wage. A total of HUF 112 billion has been set aside in the budget to cover the cost of the compensation, Csizmár added. Unions were dissatisfied with the size of the offer, though they agreed on the way the compensation should be distributed, he said. (MTI-Eco)