Minimum wage set to reach 50 percent of average wage by 2027

Written by BT/MTI

Hungary’s minimum wage needs to rise to 50pc of the average gross wage, excluding bonuses, by January 1, 2027, Sandor Czomba, the state secretary for employment policy, told public media on Thursday.

Czomba said that the government had established the benchmark value on the basis of a decision taken by employers and unions. He added that it would put the minimum wage between HUF 350,000 and HUF 400,000 per month by 2027.

To reach that level, the minimum wage needs to rise by 11-12pc per year, he said, adding that GDP and inflation levels as well as increases in productivity also needed to be weighed.

Czomba said a government degree mandating the VKF, a forum of employers, unions and the government, to start negotiations on the minimum wage would be published soon.

Although the minimum wage for skilled and unskilled workers affects about 1m people directly, its indirect impact is much broader, he added.