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Facts & Statistics

The domestic minimum wage reaches European level

During the last three terms of the Orbán government, the domestic minimum wage has increased by 74 percent and the purchasing power of the minimum wage by 87 percent.

Between 2002 and 2010, Hungary was the only country in Europe where the real value of the minimum wage decreased, Századvég Economic Research Institute announced.

From January, the monthly minimum wage will rise to HUF 200,000 and the guaranteed minimum wage to HUF 260,000. The increases have a number of positive effects, as they also increase various family allowances.

The minimum wage will be higher than the average wage under the left-wing government in 2010, Tamás Schanda, Parliamentary and Strategic State Secretary at the Ministry for Innovation and Technology, also pointed out. 

It is a very positive result that despite the epidemic, 4.7 million people are now working in Hungary and wages are rising. 

The government will in turn support businesses with a tax cut of EUR 670 billion, Schanda added. 

The Századvég Economic Research Institute said that between 2002 and 2010, the Czech Republic, Poland and Slovakia overtook Hungary in terms of the real value of the minimum wage. The Hungarian government’s strategic goal has been to raise domestic earnings, including the lowest wages.  

As a result, between 2010 and 2020, the purchasing power of the domestic minimum wage increased by 74 percent and of the minimum wage by 87 percent. Lithuania was the only country to achieve better results over this period.

“The recent announcement of further significant wage increases in Hungary means that the domestic guaranteed minimum wage will be at the European level. Wage convergence, which seemed like a dream in 2004 and 2010, has thus partially taken place,” the document underlines.

According to statistics from the Organisation for Economic Co-operation and Development, the minimum wage for Hungarian workers with at least a secondary education will be almost double that of Latvian workers, one and a half times that of Estonian and Slovakian workers, and higher than in the Czech Republic, Portugal, Greece and Lithuania. It will also be at the same level as the minimum wage for Polish and Slovenian workers.

Source
www.magyarnemzet.hu
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