“We have reached a milestone now, as we have come to an agreement with our partners on raising the minimum wage and the guaranteed minimum wage”, Minister for National Economy Mihály Varga said at a press conference that followed the standing consultation forum of the private sector and the Government.

The minimum wage and the guaranteed minimum wage are set to rise by 15 percent and 25 percent, respectively, in 2017, while employer contributions will be cut by 5 percentage points. In 2018, the minimum wage and the guaranteed minimum wage are to increase by another 8 percent and 12 percent, respectively, while contributions will be reduced by 2 percentage points.

DownloadPhoto: Ministry for National Economy

As the Minister stressed, he has fulfilled the wish of the Prime Minister that he should “go as far as he can” in wage talks. And every partner did also go as far as he could and so they have come to a pact that lays the foundations for a six-year economic plan.

In case, the Minister added, wage growth in the first nine months of 2017 exceeds 11 percent, another 0.5 percentage points may be slashed off contributions in 2018.

This deal will also enable the economy to expand at a faster rate than the current 2-3 percent per year, he noted.

(Ministry for National Economy)