Hungary: Social partners agree 2015 wage increases late in the year

Discussions on the minimum wage increase and the recommended wage increase started late in 2014, with the social partners having limited room for negotiation. The government had practically set the figures in its budget for 2015 and the relevant legislation was adopted by the parliament before discussions with the social partners gained momentum.

In these circumstances, a substantial wage increase was not expected for 2015. The government and the social partners met several times in the fourth quarter of the year, but without tangible results. Legally, the government has the right to announce a new minimum wage without the consent of the social partners.

An agreement was eventually reached by the social partners on 29 December 2014, and was then signed by the Minister of National Economy. This sets the minimum wage at HUF 105,000 (€340) a month and HUF 122,000 (€400) for graduates and skilled workers from 1 January 2015. The recommended wage increase, which orients collective bargaining at lower levels, is 3%–4%.

Read more on the agreement (in Hungarian).

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