Orbán Administration Promises Significant Wage Boost
The Hungarian government is gearing up to implement a new wage increase scheme that will span several years, as announced by a government official over the weekend. Balázs Hidvéghi, a state secretary at the Prime Minister’s cabinet office, revealed in a Facebook video that the wage increase programme will be a key focus of the upcoming National Consultation survey, which will center on the government’s new economic policy.
In recent years, significant wage hikes have been implemented, benefiting public sector workers such as nurses, doctors, teachers, kindergarten workers, policemen, fire fighters, and soldiers, among others. Wage increases have also been evident in the business sector, with the minimum wage and the minimum wage for skilled workers rising by three and a half times compared to the period under a left-wing government. Average wages have nearly tripled since then, highlighting the government’s commitment to bolstering income levels for families alongside economic growth.
Hidvéghi emphasized the need for a new agreement between employers and employees to establish a wage increase programme spanning multiple years. The goal is to swiftly elevate the minimum wage, the minimum wage for skilled workers, and the average wage. He expressed the government’s ambition to see the monthly minimum wage reach 400,000 forints (EUR 1,000) and the average wage hit 1 million forints.
To achieve the government’s wage targets, representatives of employers and unions stressed that an average annual minimum wage increase of 12 percent over the next three years would be necessary. This concerted effort aims to raise the minimum wage to EUR 1,000 per month by 2027 and reach 50 percent of the average wage by that time. However, sustaining such wage growth hinges on bolstering economic growth, reducing payroll taxes, and implementing economic development initiatives like the Demján Sándor Programme for SMEs.
Additionally, recent data released by Hungary’s Central Statistics Office revealed that the country’s jobless rate in September stood at 4.5 percent, with 220,000 individuals unemployed. Efforts to stimulate job creation and reduce unemployment are crucial to the nation’s economic prospects, particularly in light of the government’s ambitious wage increase plans.
As the government continues to prioritize economic growth and wage advancement, stakeholders across various sectors are gearing up to engage in meaningful discussions and initiatives to propel Hungary towards a more prosperous future.
