40 pc wage hike expected over next few years in Hungary?

Budapest (MTI) – Hungarian employees will enjoy a 40 percent pay increase over the next few years thanks to today’s wage pact, government office chief János Lázár said on Thursday.

The agreement is augmented by government measures spanning several years ahead, Lázár told a weekly government press briefing, noting a hike in the minimum wage combined with a cut in payroll taxes. The wage increases are partly contingent on full employment and a work-oriented society, he added.

The wage agreement is relevant to 1.2 million people, he said, calling the deal the greatest achievement of the past decade.

The wage deal was struck by the ruling Fidesz party rather than the left-wing opposition, which had done no more than talked “blah-blah about higher wages”. The significant strengthening of Hungary’s economy in recent years made the wage hikes possible, he added.

“Europe is weakening; its economic outlook is uncertain, while Hungary has a stable and completely clear economic situation,” Lázár said, adding that the government had settled the public finances.

Lázár said that “with parliament consent”, it was possible that a balanced budget could be passed in 2017.

Source: MTI