More and more people are asking for a salary increase due to inflation, but almost a quarter of companies are considering downsizing

By: Trademagazin Date: 2023. 06. 29. 12:50

In about half of Hungarian companies, employees demand extraordinary wage increases, however, in the current situation, many companies are already having trouble avoiding layoffs, according to Intrum’s European Pay Report. Jobs in the hospitality industry may be at risk, however, those who produce mainly for export are relatively safe.

40 percent of Hungarian company managers reported that some of their employees requested an extraordinary salary increase in the past year in order to cover their increased expenses due to inflation, and 7 percent reported that a large number of employees had already submitted such a request. This is revealed in the latest European Payment Report (EPR) of the receivables manager Intrum, in which 450 Hungarian business managers were also interviewed.

The answers show that 43 percent of the companies have not yet asked for a wage increase, but according to their representatives, their employees may soon announce their higher wage demands. Only 10 percent of company managers do not expect that salary increases may be necessary in the next year.

The highest proportion of employees requested a salary increase in companies related to the public sector: here, 23 percent of managers reported a large number of salary increase requests. Employees of insurance companies are the least likely to indicate their higher payment needs, but at the same time, 40 percent of company managers in this sector also expect that workers will soon be able to ask for more money.