Hungarian minimum wage will rise 36% over 3 years

According to a report from Portfolio, the minimum wage in Hungary is set to rise by 9% in 2025, while the guaranteed minimum wage will increase by 7%.

Author

Andrew Davison
November 21, 2024

This decision comes after negotiations between the government and employers regarding wage adjustments for the next three years.

Agreement Details

The discussions on Wednesday indicated that an agreement was close, with both parties discussing two potential scenarios for wage increases. Under the prevailing proposal, the minimum wage would see a cumulative increase of 36% over three years, specifically:

- 9% in 2025,

- 13% in 2026,

- 14% in 2027.

Support for Employers

In exchange for the larger wage increases, employers may receive certain relief measures. Reportedly, businesses will be required to pay the social contribution tax based on the previous year’s minimum wage rather than the current year.

The government has ambitious forecasts for wage growth in the upcoming years, although there are doubts regarding the feasibility of these projections in light of economic realities.

For more information, visit Telex.