Wage agreements in the public sector for 2006

Following the central wage agreement for 2006 in December, a series of agreements have been concluded on public employees’ salaries.

After the November central agreement at the National Interest Reconciliation Council (Országos Érdekegyeztető Tanács, OÉT), recommending a 4 to 5% gross wage increase for 2006 in the competitive sphere of the economy (i.e. in the private sector and state owned enterprises) (HU0512104F), a series of public sector agreements has been reached by the end of the year.

Undoubtedly, the most significant agreement was concluded at the 7 December meeting of the National Public Service Interest Reconciliation Council (Országos Közszolgálati Érdekegyeztető Tanács, OKÉT) on the wage increase for pubic service employees, which concerns about 550,000 employees in health, education and other public service sectors. The agreement stipulates an average of 4.8% wage increase, a compound of increases of various benefits and compensation forms. As the planned inflation rate for 2006 is 2% the wage hike is a real wage increase. The most important stipulation of the agreement probably is the one which raises the wage tariffs for pubic service employees by 3% as of 1 April 2006. This particular measure was, however, the most debated issue in the bargaining round. The initial offer of the government was a 4.5% increase, but only effective on 1 September 2006 while public sector unions demanded the same hike on 1 January 2006. The compromise eventually was to increase tariffs only by 3%, but on 1 April. According to the agreement, civil servants’ salaries will similarly be raised on 1 April 2006, by as much as 5.1%.

In December a separate sub-sectoral agreement covering the law-enforcement agencies was concluded: in this sector basic salaries will increase by 5.1%, and nine different kinds of new bonuses will be introduced on 1 January. Up to now the Independent Trade Union of Customs and Finance Guards (Vám- és Pénzügyőrség Független Szakszervezete, VPFSZ) has been unable to conclude a comparable agreement and called for a demonstration in front of the Parliament building in late January if the agreement is not reached by that time.

This information is made available through the European Industrial Relations Observatory (EIRO), as a service to users of the EIROnline database. EIRO is a project of the European Foundation for the Improvement of Living and Working Conditions. However, this information has been neither edited nor approved by the Foundation, which means that it is not responsible for its content and accuracy. This is the responsibility of the EIRO national centre that originated/provided the information. For details see the "About this record" information in this record.

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