The increase of pension contributions reduces consumption

The  Budget Council (KT) estimates, that the half percentage point increase of the pension contributions reduces the growth of household consumption by 0.1 percentage point. This can cause an approx. 3 billion HUF decline in the budget balance.

The 0.5 percentage points contribution increase reduces the net earnings growth to 5.4 percent in 2011 from the estimated at 6.0 percent – states the Budget Council. According to their calculations; the workers will try to enforce some contribution increase during the wage bargaining, therefore, the growth rate of the gross wages will increase by 0.1 percentage point – reports Világgazdaság Online.