Hungarian employers propose minimum wage hike below 6 percent

The National Association of Entrepreneurs and Employers (VOSZ) has proposed a minimum wage increase of less than 6 percent for next year, significantly lower than the 14 percent previously agreed upon in a three-year deal between unions and employers. VOSZ Secretary General László Perlusz stated that two-thirds of companies are considering a maximum increase of 6 percent due to poor economic performance, declining orders, and limited revenue.

According to recent representative surveys, business leaders are more pessimistic than they were following the April elections, citing a slower-than-expected economic recovery. While Central Statistical Office data shows that retail wages rose by 8.6 percent compared to last year, experts from GKI Research Corporation warn that current wage trends may be unsustainable. László Molnár, lead researcher at GKI, noted that without productivity gains, wage increases must come at the expense of profit, which could hinder investment and long-term competitiveness.

Labor unions have indicated they might accept a lower gross increase if promised tax relief for lower earners is implemented, a policy suggested by the Tisza Party during their campaign. However, the government has not yet confirmed these potential changes to the wage agreement.