An analysis by the Oeconomus Economic Research Foundation found that Hungary recorded the strongest wage growth in euro terms among low-income earners in the EU, as increases in the minimum wage combined with the appreciation of the forint boosted earnings when calculated in euros.
In accordance with last year’s government decision, the minimum wage in Hungary rose by 11 percent from January this year, and the guaranteed minimum wage for workers with at least one professional qualification rose by 7 percent. In its study, the Oeconomus Economic Research Foundation points out that this wage category, which is unique in the EU, distorts the statistics on the minimum wage in Hungary.
Fact
The minimum wage is the mandatory gross monthly income for full-time employment that does not require professional qualifications, while the guaranteed minimum wage (minimum wage for skilled workers) is a higher wage that must be paid in occupations requiring at least a secondary school diploma or professional qualification. Both are set annually by the government.
In Hungary, the 11 percent increase in the minimum wage is the fourth highest among EU countries, while based on Eurostat data, the minimum wage rose by as much as 18.5 percent in euros due to the 7-9 percent appreciation of the forint last year,”
Oeconomus noted in its study. Due to this year’s 11 percent increase and the rise in the forint exchange rate, the Hungarian minimum wage rose to €838. The goal of the current ruling parties is for the lowest wages to reach €1,000 by 2028.
Change in the minimum wage between 2025 and 2026 in the European Union
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To examine the change in purchasing power, the rate of increase in the minimum wage must be adjusted for inflation.
Based on a ranking compiled using the same indicator, Hungary ranks fifth among the 22 EU member states with 7.5 percent.
There is no nationally binding minimum wage in Finland, Sweden, Denmark, Austria, and Italy.
Change in the purchasing power of the minimum wage (adjusted for inflation) in national currency between 2025 and 2026
The analysis also refers to the Survey on Income Structure (SES) conducted by the European Commission every four years. According to the latest SES survey from 2022, only one in ten workers in Hungary was registered as earning the minimum wage. Based on the SES methodology, this income category included full-time employees who earned less than 105 percent of the established national minimum wage. This figure placed Hungary seventh in the EU ranking. Although the statistics are four years old, relative income levels have not fluctuated significantly during this period.
Proportion of workers earning the minimum wage in 2022
The government’s goal is to align minimum wages with average wages, and the dynamic development of recent years has served this goal. Although the minimum wage in Hungary was only 39 percent of the average wage in 2024 based on the latest statistics, it rose to 42 percent in 2025 according to the database of the Central Statistical Office (KSH). The Hungarian government’s long-term goal remains to raise the minimum wage to €1,000 and the average gross wage to 1 million forints (€2,600).
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Via oeconomus.hu; Featured photo: Pixabay
The post Our Country Sees One of the EU’s Fastest Minimum Wage Increases appeared first on Hungary Today.
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