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Facts & Statistics

Number of people earning minimum wage has fallen by more than a third in three years

In parallel with the substantial increase in earnings, fewer and fewer people are working for the mandatory minimum wage each year.

Sándor Bodó, Secretary of State for Employment Policy at the Ministry of Innovation and Technology (ITM), stated that the number of people employed at minimum wage fell by 35 percent from 2017 to 2020, to less than 250,000.

Since 2010, the minimum wage, among the Visegrad countries, has increased the most in Hungary, and the country is also at the forefront of an EU comparison.

Thanks to a six-year wage agreement reached in 2016 at the initiative of the government, the minimum wage rose by 45 percent in four years, and the guaranteed minimum wage rose by more than 63 percent. The effectiveness of the government’s measures is well illustrated by the fact that both gross and net earnings increased by 50 percent over the indicated period.

The government also supported wage increases by significantly reducing employer tax burdens. The social contribution tax decreased from 27 percent to 15.5 percent, saving Hungarian companies hundreds of billions of forints a year.

Sándor Bodó emphasized that the government seeks to build a work-based society.

Over the past decade, the number of employees has increased by more than 800,000, and the minimum wage and the guaranteed minimum wage have more than doubled, the former by 119 percent and the latter by 135 percent, versus 2010.

In terms of the national currency of the European Union member states, the minimum wage in Hungary also increased by the fourth-largest amount from 2010 to 2020, the secretary of state added.

Source
www.origo.hu
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