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The minimum wage may increase by 16 percent next year, while the guaranteed minimum wage by 14 percent. The agreement is very close, representatives of the Permanent Consultative Forum of the Business Sector and the Government announced after their Tuesday meeting.
Only the Hungarian Trade Union Confederation (MASZSZ) has yet to agree on the wage increase. On the employers’ side, Zs. Zoltán Szőke, President of the Áfeosz-Coop Association, said that the wage increase was the result of a very tough compromise.
He explained that this year’s minimum wage is 200,000 forints gross, which after a 16 percent increase will rise to 232,000 forints gross from 1 January 2023, while the current guaranteed minimum wage of 260,000 forints gross may rise to 296,400 forints gross next year after a 14 percent increase.
Szőke stressed that the government was asked to commit within the wage agreement not to increase the tax and contribution rates for wages in 2023. Employers have calculated with the current 13% social contribution tax, he said. He also pointed out that there is complete uncertainty about the development of energy and the rise in inflation, which in turn will all play a part in how businesses will cope, especially with the increase in the minimum wage for skilled workers.
The minimum wage affects less than 300,000 people in Hungary, while the guaranteed minimum wage affects almost 800,000. If the union backs the proposal at its next meeting on Thursday, workers’ wages could rise as early as January, otherwise negotiations could be delayed again until next year.
Featured Photo: Facebook Audi Hungaria