Possible increase in minimum wage

Hungary’s minimum wage could increase next month because of higher-than-expected inflation.

The pay agreement, signed by unions, the employers and the government in December 2022, provides for the minimum wage to be increased during the year if the average inflation rate exceeds 18%.

The latest figure for June shows inflation at 20.1%, down from its peak of 25.7% in January, but well above the 18.0% threshold.

The main union confederation, MASZSZ, has already called for an increase, pointing to a clause in the pay agreement which stated that “the real value of wages should be preserved in 2023”.