Are you sure?

New rule on central bank governor's salary

Amendments submitted to parliament by Minister of National Development György Matolcsy on Friday set a limit on the monthly salary of the governor of the National Bank of Hungary (MNB) and the head of the Hungarian Financial Supervisory Authority (PSzÁF) at ten times Hungary's gross average wage.

The proposed amendment to the act on PSzÁF puts a ceiling of eight times of the gross average wage for the salary of the vice-president of the supervisory authority, but the proposed amendment to the central bank act does not cover the MNB vice-governors as the salaries of the vice-presidents as well as members of the Monetary Council and the supervisory board are linked to the president's salary.

The MNB vice presidents earn 70% and 80% of the governor's gross pay while Monetary Council members earn 35%, the chairman of the MNB supervisory board receives 15% and its members receive 10%.

This means that MNB governor András Simor's monthly salary would be less than HUF 2 million this year as the Central Statistics Office (KSH) reported a gross average monthly wage of HUF 199,775 for last year. The National Bank of Hungary governor currently earns HUF 8 million per month.

The amendments are part of government plans to limit gross wages in the public sector to HUF 2 million a month.

Analysts noted earlier that the ECB may oppose the government's plan to cut the central bank governor's pay as a step to curb central bank independence. The new government criticized Simor for his personal investments since it took power but Simor said he intended to continue until his mandate ends in 2013. (MTI-ECONEWS)