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Finance Minister Calls for ‘Significant’ Minimum Wage Rise to ‘Retain Competitive Advantage’

MTI-Hungary Today 2021.09.09.

A “significant” minimum wage hike is needed to retain Hungary’s current advantage against other European countries in restarting the economy after the coronavirus pandemic, Finance Minister Mihály Varga said after talks with László Parragh, the head of the Hungarian Chamber of Commerce and Industry.

Varga and Parragh agreed that state assistance is needed to help small and medium-sized businesses cope with paying a higher minimum wage, and opportunities for compensation, such as further tax cuts, are being considered, the finance ministry said in a statement on Wednesday.

Referring to consultations with both employers and employees, the minister said that there was “broad consensus” concerning a minimum wage hike, and pledged the government’s assistance to SMEs, which would be most impacted by the measure.

Orbán Announces Huge Minimum Wage Increase, but Still Among Lowest in EU
Orbán Announces Huge Minimum Wage Increase, but Still Among Lowest in EU

If the government were to raise the current gross monthly minimum wage to HUF 200,000 in just one step, it would mean a more than 19% percent increase.Continue reading

Featured photo by Noémi Bruzák/MTI