Almost all domestic businesses are preparing for a wage increase of some size this year, reports Magyar Nemzet. Almost ninety percent of the companies employing more than ten employees are planning wage measures, and about sixty percent of them are also planning to increase wages in excess of inflation. Thus, real wages may increase by ten percent in 2022.
Wage catch-up was only temporarily slowed down by the Covid-19 epidemic in 2020 and 2021. On the one hand, the nearly twenty percent increase in the guaranteed minimum wage, and on the other hand, the struggle to retain and acquire experienced and qualified labor force, puts businesses under serious pressure. The intention of the private sector to settle wages shows that companies are expecting higher inflation than before, so the wage increase also increases the purchasing value of employees' earnings for most players.
Following the lifting of the restrictions that curbed the spread of the epidemic last summer, the Hungarian economy quickly recovered. As a result, the labor shortage that was dominant in many sectors until 2019 returned.
The number of vacant positions even exceeds the pre-crisis level.
In this labor market situation, the competitive sector can retain its employees by raising wages and benefits.
And the salary remains competitive if it does not deviate from the wages typical of competitors. It is important that the employees are also aware of this, so turnover is becoming more and more typical in sectors suffering from a shortage of professionals. A company that offers a competitive salary to subordinates remains competitive.
Source: mandiner.hu
Featured image: autopro.hu
