Government, unions, employers reach deal on minimum wages

Budapest, December 22 (MTI) – The economy ministry on Tuesday reached an agreement with three employer associations and two trade unions on the monthly minimum wages for skilled and unskilled workers, state secretary Peter Cseresznyes said.

Under the agreement, the monthly minimum wage for unskilled workers next year will rise to gross 111,000 forints (EUR 353.6) and skilled workers will get 129,000 forints (EUR 411). The minimum wages will be confirmed in a government decree in the coming days.

Calculating with projected inflation of 1.6 percent and a personal income tax rate of 15 percent in 2016, the minimum wage will rise in real terms by 5.6 percent for unskilled workers and by 5.7 percent for skilled workers next year, the highest rates since 2002, the state secretary said.

Unions confederation MaSzSz, also a member of the broad forum of representatives from the private sector and the government responsible for wage talks, did not sign the agreement.

The economy ministry agreed to continue talks with unions and employer associations on the private sector’s wage recommendation for 2016, the amendment of the labour code and the controversial points of the strike law and on improving working conditions for workers whose jobs place heavy physical or psychological burden on them.

The state secretary said the parties also agreed to begin wage talks for 2017 next spring.

Ferenc David, chief secretary of the National Association of Employers (VOSZ), said employer associations made a significant commitment by signing the agreement because the wage increase will cost the private sector 80 billion forints. He said the agreement sends the message that unions, the government and employers are able to reach a deal that is fair for everyone.