”Mandatory fetter”: how severe the burden of mandatory wage increase is?

The February business survey of the GKI Gazdaságkutató Zrt. economic researcher examined the business impact of the minimum wage increase. It is important to point out that the survey (companies above 5 workers, 931 responses) over-represented the Hungarian-owned small and medium-sized enterprises and large corporations, and under-represented the foreign-owned large enterprises.

The companies experienced the mandatory wage increase clearly negative, while as the size increases, it is becoming less of a problem. In connection with the increase of the minimum wage companies below 250 employees almost equally indicated a negative impact, while the companies with more than 250 workers reported a neutral effect. The increase of the guaranteed minimum wage has caused problems in all size categories: in this case, large companies also reported a significant problems