[Hungary] 10 per cent minimum wage rise for skilled workers proposed

Unions have proposed that Hungary’s minimum wage should be increased by 10 per cent for skilled workers and 15 per cent for unskilled labourers in 2024, Budapest Business Journal reports.

The head of the National Federation of Workers' Councils (MOSZ) announced the news to MTI on October 11 following a meeting of the VKF, a forum of employers, unions and the government.

Imre Palkovics reportedly said that higher wages would boost domestic consumption and support economic growth.

László Perlusz - the chief secretary of the National Association of Businesses and Employers (VOSZ) - told MTI that "most employers" were thinking in terms of a 10-15 per cent average wage hike if this year's GDP growth was close to zero. 

He added that more precise figures could be tabled after third-quarter GDP data is published.

Employers and unions both proposed allowing businesses to pay their lowest earners a one-off HUF 100,000, free of payroll tax, to compensate for this year's inflation, Mr Perlusz said. 

The idea was reportedly proposed to restructure the minimum wage categories over a four-year period, retaining the minimum wage for unskilled labourers, while establishing a wage scale for various sectors of the economy that would serve as a benchmark for minimum wages for skilled workers. Such a system would allow employers "greater flexibility" and the chance to set higher minimum wages for skilled workers in "more competitive" sectors, the chief secretary added.

Mr Palkovics reportedly agreed that the dual minimum wage system should be phased out and suggested the two minimum wages could "merge" around 2027 when they reach the HUF 350,000-370,000 level. After that, a sectoral wage scale could be the guideline for skilled workers’ minimum pay, the MOSZ head added.

On January 1, Hungary's statutory monthly minimum wage was raised by 16 per cent to HUF 232,000 for unskilled labourers and by 14 per cent to HUF 296,400 for skilled workers.

Source: Budapest Business Journal

(Quotes via original reporting)

Unions have proposed that Hungary’s minimum wage should be increased by 10 per cent for skilled workers and 15 per cent for unskilled labourers in 2024, Budapest Business Journal reports.

The head of the National Federation of Workers' Councils (MOSZ) announced the news to MTI on October 11 following a meeting of the VKF, a forum of employers, unions and the government.

Imre Palkovics reportedly said that higher wages would boost domestic consumption and support economic growth.

László Perlusz - the chief secretary of the National Association of Businesses and Employers (VOSZ) - told MTI that "most employers" were thinking in terms of a 10-15 per cent average wage hike if this year's GDP growth was close to zero. 

He added that more precise figures could be tabled after third-quarter GDP data is published.

Employers and unions both proposed allowing businesses to pay their lowest earners a one-off HUF 100,000, free of payroll tax, to compensate for this year's inflation, Mr Perlusz said. 

The idea was reportedly proposed to restructure the minimum wage categories over a four-year period, retaining the minimum wage for unskilled labourers, while establishing a wage scale for various sectors of the economy that would serve as a benchmark for minimum wages for skilled workers. Such a system would allow employers "greater flexibility" and the chance to set higher minimum wages for skilled workers in "more competitive" sectors, the chief secretary added.

Mr Palkovics reportedly agreed that the dual minimum wage system should be phased out and suggested the two minimum wages could "merge" around 2027 when they reach the HUF 350,000-370,000 level. After that, a sectoral wage scale could be the guideline for skilled workers’ minimum pay, the MOSZ head added.

On January 1, Hungary's statutory monthly minimum wage was raised by 16 per cent to HUF 232,000 for unskilled labourers and by 14 per cent to HUF 296,400 for skilled workers.

Source: Budapest Business Journal

(Quotes via original reporting)