Salary agreement achieved for the next three years
As reported, the minimum wage will increase by 9% to HUF 290,800 gross per month from 1 January 2025, and by a further 13% one year later and by a further 14% from 1 January 2027 to HUF 374,600. The guaranteed minimum wage for skilled workers will be raised by a more modest 7% to HUF 348,800 gross in 2025. This will bring the minimum wage, which according to the Ministry of Economy is paid to around 210,000 employees, slightly closer to the special minimum wage for qualified employees, which is currently paid to almost 340,000 Hungarians. It has not yet been decided what will happen to the guaranteed minimum wage after 2025. Monday’s agreement merely states that it will be increased in 2026/27 depending on inflation and productivity.
The document assumes an increase in gross average wages of 8.7% in 2025, 7.6% in 2026 and 7.4% in 2027, with economic growth of 3.4-4.1-4.3% and inflation falling from 3.2% to 3%.
Peace year as a precondition
The Prime Minister was one of the signatories of the medium-term agreement at the meeting of the Consultation Forum of Social Partners (VKF), which took place on Monday in the Carmelite Monastery at the castle. Viktor Orbán (centre) explained that the signing was guided by the concept that the world, and Europe in particular, will make 2025 a year of peace. Economic growth of more than 3% would then become realistic. However, should ‘difficulties’ arise that jeopardise the optimistic scenario of the wage agreement, a review clause has been included to allow the figures to be corrected retrospectively. ‘We naturally trust that this will not be necessary and that the government’s macroeconomic expectations are correct.’
Orbán spoke of a ‘historic’ agreement that ‘raises the minimum wage to a worthy position on the European scale’. Hungary wants to lead the midfield in order to have a chance of moving into the top group at some point. The minimum wage will increase by 29% in real terms by 2027 and the plan is to reach half the average wage.
The next big goal: 1 million forints
For 2025, the Prime Minister expects 300 new investments with a total value of 8,100 billion forints (just under 20 billion euros). The Budapest-Belgrade railway line will be handed over, as will ‘huge’ plants in Győr, Szeged and Debrecen.
In the ‘foreseeable’ future, average incomes should reach 1 million forints per month. ‘I know that this statement is highly contested today. But in 2010, nobody wanted to believe that we would create an additional one million jobs,’ said Orbán, setting out the next major goal.
After two black years
For the employers’ side, László Perlusz (left) spoke of an “extraordinarily ambitious” agreement. The Secretary General of VOSZ recalled the ‘terrible’ inflation of 2023 and the ‘extremely modest’ upturn in the current year, which does not make it easy for companies to agree to a 7-9% increase in the minimum wage after two ‘black years’ like these. The task for employers is to make their companies more competitive and productive, to use the latest technologies, AI, digitalisation and robotics.
For the trade union side, League leader Melinda Mészáros recalled that the agreement can be renegotiated if the general macroeconomic environment, GDP or average wages develop differently than expected. She spoke of a continuation of the comprehensive six-year wage agreement from 2016, saying that the position of the economy as well as workers and families has improved thanks to the agreement. Hungary is one of only six EU countries to have transposed the EU’s minimum wage directive into national law on time.
In addition to the Prime Minister, Perlusz and Mészáros, the three-year wage agreement was also signed by Ferenc Rolek (2nd from left), Vice President of the employers’ association MGYOSZ, Zoltán Zs. Szőke (centre left), President of the ÁFEOSZ-COOP trade association, Imre Palkovics (centre right) and Róbert Zlati, President of the MASZSZ trade union confederation.
