Illustration - Photo: pxfuel

Employers, unions sign minimum wage agreement

Representatives of employers and unions signed an agreement on next year's minimum wage rise on Wednesday.

Under the agreement, the monthly minimum wage for unskilled labourers will rise by 16 percent to 232,000 forints (EUR 577), while the minimum wage for skilled workers will climb 14 percent to 296,400 forints (EUR 737) from January 1.

Around 730,000 people are paid the minimum wage for skilled workers, while 230,000 get the minimum wage for unskilled labourers.

Sandor Czomba, state secretary for employment policy, said feedback suggests across-the-board wages will rise over 10 percent in a number of sectors next year.

He acknowledged that the government had “far less room for manoeuvre” than in earlier years, when payroll tax cuts were coupled with the minimum wage rise. He noted that the payroll tax had been scaled down from 28.5 percent to 13 percent between 2017 and 2022, adding that every percentage point reduction translated as a 400 billion forint decline in budget revenue.

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