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PM Orbán signs the wage agreement

The Hungarian government has been steadily reducing taxes on labor, with rates falling by a quarter since 2010.

Growth is a joint Hungarian success, and everyone should benefit from it, Prime Minister Viktor Orbán said on Monday in Budapest, when signing the wage agreement. 

At the signing ceremony at the Carmelite monastery, the prime minister stressed that any wage agreement not only entails an increase in minimum wages, but also a reduction in taxes and contributions for employers. If taxes are cut, then employers can give this money to workers, leaving more for businesses and therefore more for families, he added. 

The PM said this money will create more jobs and rising wages, which will ultimately boost economic output further. The key point of the whole current work-based economy is a tax system that can improve competitiveness; tax cuts have created the opportunity to talk about how much they can raise wages every year, Orbán explained.

The PM said that the guaranteed minimum wage will be HUF 260,000 and the minimum wage HUF 200,000. The minimum wage will be accompanied by a significant increase in the wages of public sector workers as well. 

Between 2002 and 2010, the real value of the minimum wage in Hungary fell by 2 percent, while in the other V4 countries, the same indicator rose by 30 percent, he said.

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