Minister of State for Employment Sándor Czomba stated that in 2010-2013 Hungarian gross minimum wage increased to the largest extent, by 9.89%, among the 34 member countries of the Organization for Economic Co-operation and Development (OECD).

He added that within the EU the Hungarian minimum wage increase was the second largest in the same period. With regard to gross minimum wage increase calculated at purchasing power parity, since 2010 Hungary “has come ahead of the Czech Republic, Slovenia and Croatia and currently the minimum wage is higher than Hungary’s only in Slovenia and Poland, which is a great achievement,” Mr Czomba said. He added that currently 750 thousand people earn the minimum wage or a guaranteed minimum wage for skilled workers, of which 580 thousand people work in the private sector and 170 thousand are employed within the public sector.

“Although the direction is right, we cannot rest contentedly,” he underlined, while emphasising that the proportion of minimum wage to the average wage is 44 percent, which is the seventh best figure within the EU. In his opinion, the Government has managed to reach a balance between minimum wage growth and employment, and mentioned the social contribution tax allowance, the Job Protection Action Plan and the wage compensation scheme among measures which have helped achieve this result.

The Minister of State prognosticated a significant wage increase in real terms for this year as well, given the fact that at last year’s wage negotiations they calculated with a much higher inflation rate (5.2%), while this indicator is expected around 2% this year.

(Ministry for National Economy)