Official: Minimum wage deal ready to be signed

The monthly minimum wages for unskilled and skilled workers are set to rise to 200,000 forints (EUR 557) and 260,000 forints (EUR 724), respectively, on January 1. The 20 percent rise, he added, would be “unprecedentedly high” for recent years.

Bodo noted difficulties in supply chains resulting from the pandemic, adding that whereas long-term agreements were therefore hard to strike, talks would continue “in the interest of predictability”.

The government will help employers implement the agreement by reducing employer contributions, the tax on small businesses and keeping the way local business taxes are collected next year, saving companies around 660-670 billion forints.

The state secretary said the minimum wage increase would put upward pressure on wages more generally, as well as wage-related benefits.