Gulyás: 10% real wage growth can be expected this year

Minister Gulyás announced during the briefing that the government expects a roughly 10 percent increase in real wages this year, continuing its emphasis on policies aimed at strengthening household income. Over the past two years, wages have risen by approximately 40 percent, marking significant progress in workers’ purchasing power. The minister also projected a 40 percent increase in the minimum wage by 2027, underlining the government’s long-term commitment to ensuring substantial and sustained wage growth.

He also addressed disparities in affordable housing, emphasizing regional differences and the importance of empowering both employers and employees to improve the situation. Key initiatives include launching the Sándor Demján Program, aimed at bolstering small and medium-sized enterprises (SMEs).

Minister Gulyás revealed additional measures to support families and rural communities. From next year, the child tax allowance will double, while the reinstated 13th monthly pension will remain a cornerstone of social policy. For residents in smaller settlements, the government will continue offering up to HUF 3 million in state subsidies for home renovations.

First-time homebuyers will benefit from a capped 5 percent interest rate, with efforts underway to encourage banks to expand eligibility. The minister expressed optimism about the program’s potential to enhance housing access.

Regarding SMEs, Gulyás disclosed that National Economy Minister Márton Nagy has been tasked with finalizing details with the Hungarian Chamber of Commerce and Industry (MKIK) to further tailor government assistance programs.

Turning to foreign policy, Gulyás reaffirmed Hungary’s position on the ongoing conflict in Ukraine, underscoring the government’s refusal to supply weapons and voicing concerns about escalating tensions. “The danger is greater than ever,” he noted, urging a focus on de-escalation rather than increased militarization.

Finally, the minister touched on EU-related matters, criticizing the bloc’s migration policies and the introduction of new pan-European taxes. However, he expressed cautious optimism for peace and economic growth by 2025, forecasting a 3.4 percent GDP increase in Hungary.

Minister Gulyás concluded by reiterating the government’s commitment to balancing economic development with social welfare, providing reassurance that Hungary is positioned to navigate current challenges effectively.