[Hungary] Government scales back promised 13% minimum wage hike

In Hungary, the government’s previously promised 13 per cent minimum wage hike now seems unlikely to happen as its plans are scaled back, Daily News Hungary reports.

Speaking to RTL News, Minister of National Economy Márton Nagy said that in the current economic climate, a more realistic increase would be around 10 per cent, from January 2026. 

The government reportedly believes this lower rise should still be considered a win. The minister stated that neighbouring countries have experienced negligible wage growth, making a double-digit increase a significant achievement.

The basis for current wage negotiations is a three-year deal signed in 2023, which outlined minimum wage hikes of 9 per cent in 2025, 13 per cent in 2026, and 14 per cent in 2027. The projections at the time were based on a 3.4 per cent GDP growth, 3.2 per cent inflation, and an 8.7 per cent average wage increase. 

However, the economic landscape has subsequently undergone a dramatic shift. According to Telex, GDP growth this year is expected to reach just 1 per cent, while inflation could rise to 4.7 per cent.

The agreement reportedly included a clause allowing for renegotiation if conditions changed significantly. The government is now invoking this. Officials cite the need to preserve companies’ profitability and survival. 

Zlati Róbert - president of the Hungarian Trade Union Confederation - acknowledged that, although workers would welcome the largest raise possible, economic realities cannot be ignored. 

The goal, he said, is not to impose unsustainable burdens that could force companies to shut down. To help facilitate an agreement, the government is also proposing to reduce the employer-paid social contribution tax from 13 per cent to 12 per cent.

Source: Daily News Hungary

In Hungary, the government’s previously promised 13 per cent minimum wage hike now seems unlikely to happen as its plans are scaled back, Daily News Hungary reports.

Speaking to RTL News, Minister of National Economy Márton Nagy said that in the current economic climate, a more realistic increase would be around 10 per cent, from January 2026. 

The government reportedly believes this lower rise should still be considered a win. The minister stated that neighbouring countries have experienced negligible wage growth, making a double-digit increase a significant achievement.

The basis for current wage negotiations is a three-year deal signed in 2023, which outlined minimum wage hikes of 9 per cent in 2025, 13 per cent in 2026, and 14 per cent in 2027. The projections at the time were based on a 3.4 per cent GDP growth, 3.2 per cent inflation, and an 8.7 per cent average wage increase. 

However, the economic landscape has subsequently undergone a dramatic shift. According to Telex, GDP growth this year is expected to reach just 1 per cent, while inflation could rise to 4.7 per cent.

The agreement reportedly included a clause allowing for renegotiation if conditions changed significantly. The government is now invoking this. Officials cite the need to preserve companies’ profitability and survival. 

Zlati Róbert - president of the Hungarian Trade Union Confederation - acknowledged that, although workers would welcome the largest raise possible, economic realities cannot be ignored. 

The goal, he said, is not to impose unsustainable burdens that could force companies to shut down. To help facilitate an agreement, the government is also proposing to reduce the employer-paid social contribution tax from 13 per cent to 12 per cent.

Source: Daily News Hungary