Sándor Czomba: the minimum wage will increase by nine percent next year

By: Trademagazin Date: 2024. 11. 22. 11:10

The minimum wage will increase by nine percent next year, thirteen percent in two years, and fourteen percent in three years. It was not easy, but the wage agreement between the government, employers, and employee representatives was reached – said the State Secretary for Employment Policy of the Ministry of National Economy (NGM) on Thursday in Miskolc, at the ceremonial presentation and handover of the TOP100 publication listing the hundred most significant enterprises headquartered in Borsod-Abaúj-Zemplén County.

According to Sándor Czomba, the minimum wage will thus increase by an average of twelve percent in the next three years.

He said that by implementing the wage increases, the government wants to achieve that the minimum wage will reach fifty percent of the regular average gross earnings at that time by 2027. The guaranteed minimum wage will also remain and will increase by seven percent next year – the State Secretary emphasized.

According to the State Secretary, with the adoption of the wage agreement, “the path has been drawn”, which gives the theoretical possibility for the minimum wage to reach up to 400 thousand forints by 2028. He highlighted that an important task for businesses in the coming period will be to increase productivity and efficiency, which “substantially contribute” to GDP, in order to achieve results.

Sándor Czomba said that the number of reported labor needs is increasing and the labor market is “tight”, which means that businesses are finding it difficult to find suitable labor. Employment has not fallen to the extent that was expected based on economic data in the recent period.

He highlighted that this is also due to the fact that businesses are trying to retain the appropriate labor force until the last moment.

The State Secretary said that several investments are expected to be implemented, for example, 30 thousand new jobs will be created in the Debrecen area by 2030. Some companies are not looking for suitable workers among registered job seekers, a significant number of companies settling in the country are looking for human resources with work experience, he added.

When it was launched, 300 thousand people worked in public employment, while now 65 thousand. However, this form of employment will not disappear, because there are life situations in which it is necessary. He added that the government’s primary goal is to provide jobs for everyone in the private sector.

He highlighted that in terms of employment rate, Hungary is on a par with the Scandinavian countries and Germany in the European Union (EU), while in 2010 it competed with Malta for last place. The activity of the older population is also improving, while six years ago 30 thousand people of retirement age were working, now 140 thousand.