Published: November 16 2023
In Hungary, an agreement has been reached between employers and employees regarding an increase in the minimum wage and guaranteed minimum wage. This agreement will go into effect in December 2023 and will continue to be valid in 2024.
Increase in Minimum Wage
According to the agreement, the minimum wage will increase by 15% to 266,800 forints in December 2023. This is a significant increase from the current minimum wage of 232,000 forints in 2022.
Increase in Guaranteed Minimum Wage
The guaranteed minimum wage will also see a 10% increase to 326,000 forints in December 2023. This ensures that employees are guaranteed a higher minimum income.
The agreement states that from January 2024 onwards, the minimum wage will remain at 266,800 forints, while the guaranteed minimum wage will stay at 326,000 forints. These wages apply to those who work full-time, more than 36 hours per week.
Ensuring Real Value of Wages
Both employers and employees acknowledge the importance of maintaining the real value of wages. Recommendations will be made to businesses to consider further wage increases based on their own financial situations. Additionally, there will be discussions on updating the wage system to ensure the long-term purchasing power of wages.
Questions & Answers
What is the minimum wage and guaranteed minimum wage in Hungary? As of 2023, the minimum wage in Hungary is set to increase by 15% to 266,800 forints, and the guaranteed minimum wage will increase by 10% to 326,000 forints.
When will the new minimum wage and guaranteed minimum wage take effect? The new minimum wage and guaranteed minimum wage will take effect from December 2023.
Who will benefit from the increase in minimum wage and guaranteed wage? All employees working full-time, for at least 36 hours per week, will benefit from the increase in minimum wage and guaranteed wage.
Will the minimum wage and guaranteed minimum wage increase in 2024? Yes, as per the agreement, the minimum wage will remain at 266,800 forints and the guaranteed minimum wage will remain at 326,000 forints starting from January 2024.
Are there any recommendations for maintaining the real value of wages in the private sector in 2024? Yes, the parties involved have made recommendations to preserve the real value of wages in the private sector in 2024. They encourage each business to consider their own business, financial, and wage market conditions and promote further wage increases accordingly.
Will all employers be able to implement the new wage levels from December 1, 2023? The government is committed to discussing the proposals and creating the necessary legislation to implement the new minimum wage, so there should be no obstacle for employers to apply the new wages starting from December 1, 2023.
Did all labor unions sign the agreement regarding the increase in minimum wage and guaranteed minimum wage? No, the Hungarian Trade Union Confederation did not sign the agreement.