[Hungary] Minimum wage agreement signed

Hungary’s economic development ministry has announced that an agreement reached recently by unions and employers associations for minimum wage increases was signed on November 19, Daily News Hungary reports

The agreement was signed by all members of the VKF - a forum of employers, unions and the government - apart from unions association MASZSZ. 

Under the deal, the monthly minimum wage for unskilled labourers will reportedly rise by 15 per cent to 266,800 forints (EUR 704), while the minimum wage for skilled workers will increase by 10 per cent to 326,000 forints as of December 1, the press release said. 

The agreement contains a recommendation for businesses to increase pay to a level that ensures real wage growth. In addition, it opens the door for talks on changes to the minimum wage system that would preserve earners’ purchasing power and expresses a commitment to encouraging collective contracts. 

Sandor Czomba - state secretary at the economic development ministry - said the agreement would favourably impact the whole of the national economy. Mr Czomba said the agreed deadlines were “such signal points of direction that convey an important message to all players of the economy.” 

The minister stated that the sides had seen eye to eye during the wage negotiations. 

“It is worth making joint decisions in the longer run and focusing on strengthening the economy following this year’s measures aimed at reining in inflation,” he said and noted the government’s commitment to increasing real wages “every year in line with economic performance”. 

Imre Palkovics - trade union federation MOSZ head - said the agreement was “an acceptable compromise in light of the circumstances and economic reality”. Mr Palkovics reportedly said employees had sought a pay hike to compensate for inflation and to reduce the gap between the minimum wage and the average, goals “we have managed to meet”. 

Ferenc Rolek - deputy head of the national employer federation MGYOSZ - said the early date on which the agreement had been reached indicated “a positive attitude” from the sides involved in the talks. Mr Rolek said employer representatives had made “huge compromises” however they “felt a commitment to increasing the living standards of the poorest”. 

In view of a planned 6 per cent inflation next year, the real income of minimum wage earners will increase by 9 per cent, he said and added that it was a great achievement by “an economy just recovering from recession”

Source: Daily News Hungary

(Quotes via original reporting)

Hungary’s economic development ministry has announced that an agreement reached recently by unions and employers associations for minimum wage increases was signed on November 19, Daily News Hungary reports

The agreement was signed by all members of the VKF - a forum of employers, unions and the government - apart from unions association MASZSZ. 

Under the deal, the monthly minimum wage for unskilled labourers will reportedly rise by 15 per cent to 266,800 forints (EUR 704), while the minimum wage for skilled workers will increase by 10 per cent to 326,000 forints as of December 1, the press release said. 

The agreement contains a recommendation for businesses to increase pay to a level that ensures real wage growth. In addition, it opens the door for talks on changes to the minimum wage system that would preserve earners’ purchasing power and expresses a commitment to encouraging collective contracts. 

Sandor Czomba - state secretary at the economic development ministry - said the agreement would favourably impact the whole of the national economy. Mr Czomba said the agreed deadlines were “such signal points of direction that convey an important message to all players of the economy.” 

The minister stated that the sides had seen eye to eye during the wage negotiations. 

“It is worth making joint decisions in the longer run and focusing on strengthening the economy following this year’s measures aimed at reining in inflation,” he said and noted the government’s commitment to increasing real wages “every year in line with economic performance”. 

Imre Palkovics - trade union federation MOSZ head - said the agreement was “an acceptable compromise in light of the circumstances and economic reality”. Mr Palkovics reportedly said employees had sought a pay hike to compensate for inflation and to reduce the gap between the minimum wage and the average, goals “we have managed to meet”. 

Ferenc Rolek - deputy head of the national employer federation MGYOSZ - said the early date on which the agreement had been reached indicated “a positive attitude” from the sides involved in the talks. Mr Rolek said employer representatives had made “huge compromises” however they “felt a commitment to increasing the living standards of the poorest”. 

In view of a planned 6 per cent inflation next year, the real income of minimum wage earners will increase by 9 per cent, he said and added that it was a great achievement by “an economy just recovering from recession”

Source: Daily News Hungary

(Quotes via original reporting)