The minimum wage in Hungary is to increase to HUF 105 000 (EUR 334), while the level of the guaranteed minimum wage is to be set at HUF 112 000 (EUR 388) and a 3-4 per cent pay rise will be reccommended for employees in the business sector; acting for the government, Minister for National Economy Mihály Varga signed the wage agreement for next year with the leaders of bodies representing employees and employers on Monday.
Mr. Varga explained that both the minimum wage and the level of the guaranteed minimum wage will increase by 3.4 per cent in 2014. While the level of inflation is expected to be at 1.8 per cent next year, the agreement brings about a further increase in the real value of salaries, he said.
The Minister hailed it a success that the thirty-eight per cent total increase in gross minimum wages between 2010 and 2014 is the largest among the thirty-four member states of the Organisation for Economic Co-operation and Development (OECD). He added that thanks to low inflation and family tax concessions real wages have increased by a total of ten per cent since 2010. In October alone, the real value of wages increased by 3.7 per cent, meaning that wages’ consumer value has been on the rise continuously for almost two years, he highlighted.
Minister Varga went on to say that the level of employment in Hungary is the highest in twenty-two years and almost 4.2 million people are currently in employment in the country, which represents an increase of 360 000 from last year. Close to 160 000 people found a job in the competitive sector last year, he said, adding that government measures to protect jobs have resulted in the preservation of 800 000 posts of employment for new entrants to the labour market, employees above the age of 55, people of low education and women returning from maternity leave.