According to a statement from the Ministry of Innovation and Technology sent to MTI on Wednesday, Hungarian families will now benefit even more from Hungary’s positive economic growth with the move to raise the mandatory minimum wage above the average wage level of 2010. Employers will receive a total tax cut of more than HUF 660 billion per year, with the savings used to improve employee wages.
Compared to the beginning of the last decade, the minimum wage and the minimum wage for skilled workers have more than doubled. Jobs and wages have been protected even during COVID-19, and the Hungarian economy is among the best performing in Europe. There is a strong demand for an increase in the minimum wages, with 94 percent of respondents to the national consultation backing a plan to raise the minimum wage to HUF 200,000, the ministry wrote.
According to the draft agreement, the government will continue to reduce wage taxes in line with current productivity, competitiveness and economic growth, taking into account the capacity of the budget to absorb the burden.
All companies are also encouraged to increase real wages in line with their business, financial and market position by using their savings from tax cuts to do so.