An agreement on a 15 percent increase in the minimum wage was officially signed

The increase in the minimum wage and the guaranteed minimum wage is not only about the 250,000 and 750,000 workers who are directly affected by the measure, but also has serious other economic and wage-related effects, said the State Secretary responsible for employment policy of the Ministry of Economic Development (GFM) on Monday in Budapest. after signing the new minimum wage agreement.

Sándor Czomba emphasized that serious concessions had to be made on both the employer’s and the employee’s side in order for the agreement to be reached. In such a difficult, crisis period, it is particularly important that the actors of the economy know what to adjust to. The 15 percent increase in the minimum wage, the 10 percent increase in the guaranteed minimum wage, and the entry into force on December 1 are adjustment points that represent an important message for the actors of the economy for the next period, he said.

The state secretary said: during the negotiations, it was discussed that it is worthwhile to think together in the longer term and to focus on strengthening the economy after this year’s measures to curb inflation. This agreement is also important from this point of view, as well as the intention that in the next period, real wages will rise year by year, depending on the performance of the economy, he added.

Imre Palkovics, the president of the National Union of Workers’ Councils, announced after the signing of the agreement: an acceptable and acceptable compromise for the trade union side was reached, taking into account the circumstances and the economic reality.

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One of the goals of the employee side was to be able to achieve compensation due to this year’s inflation. In addition, they wanted an increase to the extent that the minimum wage approaches the average wage, and the increase exceeds the real preservation in 2024

he explained. The goals set by the trade unions have been achieved, he indicated. Imre Palkovics also highlighted that the minimum wage will increase from December 1 this year. Ferenc Rolek, the vice-president of the National Association of Employers and Manufacturers (MGYOSZ), on behalf of the employers’ side, also called it a significant result that the five organizations and the government managed to reach an agreement, moreover, at such an early date. This shows the positive attitude of the parties, he indicated.

Speaking about the content of the agreement, he said: the employer side made big compromises, but they felt that they could significantly increase the living standards of the poorest strata in real terms. Assuming inflation of 6 percent next year, the real income of those earning the minimum wage will increase by 9 percent, in the case of the guaranteed minimum wage, the increase will be 4 percent, he pointed out.

He added: this is particularly significant, especially when it comes to an economy just recovering from recession.
The GDP in the third quarter has already turned positive, and they are confident that this will continue next year as well – stressed Ferenc Rolek.

The agreement on the increase of the minimum wage and the guaranteed minimum wage was officially signed on Monday in Budapest by five members of the Permanent Consultative Forum of the Competition Sector and the Government (VKF), as well as Sándor Czomba, the State Secretary responsible for employment policy of the Ministry of Economic Development (GFM) on behalf of the government.

According to the agreement between employers and employees, as well as the government, the minimum wage will increase by 15 percent to HUF 266,800 gross, and the guaranteed minimum wage by 10 percent to HUF 326,000 gross as of December 1 of this year.

Employers are represented by the National Association of General Consumer Cooperatives and Trading Companies (ÁFEOSZ-COOP), the National Association of Employers and Manufacturers (MGYOSZ), and the National Association of Entrepreneurs and Employers (VOSZ), and the employees are represented by the Liga Trade Unions and the Works Councils The leaders of the National Association signed the document. The sixth member of the VKF, the Hungarian Trade Union Association, did not sign the agreement.

(MTI)

Cover image source: Pixabay