Published: November 20 2023
Recently, an agreement was reached between unions and employers associations in Budapest regarding an increase in the minimum wage for Hungarian workers. This agreement aims to ensure real wage growth and encourages collective contracts. In this article, we will discuss the key details of this agreement and its impact on Hungarian workers.
Minimum wage increase
As per the agreement, the monthly minimum wage for unskilled laborers will increase by 15 percent to 266,800 forints (EUR 704), effective from December 1. Additionally, the minimum wage for skilled workers will see a 10 percent increase to 326,000 forints.
Recommendations for businesses
The agreement also contains a recommendation for businesses to raise pay in order to ensure real wage growth. This implies that employers are encouraged to increase wages beyond the minimum required amount to support the financial well-being of their employees.
Future changes to the minimum wage system
The agreement opens the door for discussions on changes to the minimum wage system. These discussions will aim to preserve earners' purchasing power, further strengthening the financial stability of Hungarian workers. The agreement also demonstrates a commitment from both sides to encourage collective contracts, which can further benefit workers.
The recent agreement reached between unions and employers associations in Budapest is set to bring about an increase in the minimum wage for Hungarian workers. This agreement not only ensures real wage growth but also sets the stage for future discussions on improving the minimum wage system and promoting collective contracts. This development is expected to have a positive impact on the financial well-being of Hungarian workers.
Questions & Answers
What was the recent agreement reached in Budapest about? The recent agreement reached in Budapest was about minimum wage increases for Hungarian workers.
Who signed the agreement on minimum wage rises in Hungary? The agreement was signed by all members of the VKF, a forum of employers, unions, and the government, with the exception of the unions association MASZSZ.
What will be the new monthly minimum wage for unskilled laborers in Hungary? The monthly minimum wage for unskilled laborers in Hungary will rise by 15 percent to 266,800 forints (EUR 704).
How much will the minimum wage for skilled workers increase by in Hungary? The minimum wage for skilled workers in Hungary will increase by 10 percent to 326,000 forints.
When will the new minimum wages come into effect in Hungary? The new minimum wages in Hungary will come into effect on December 1.
What does the agreement recommend to businesses regarding pay? The agreement contains a recommendation for businesses to raise pay in a way that ensures real wage growth.
What other changes are addressed in the agreement on minimum wage system in Hungary? The agreement paves the way for talks on changes to the minimum wage system that would preserve earners' purchasing power and expresses the sides' commitment to encouraging collective contracts.