The funds are stable, positive news and developments affecting families and the economy are constantly arriving.

An agreement was reached between employers and employees at Thursday's meeting of the Permanent Consultation Forum (VKF) of the Competition Sector and the Government. The parties reached an agreement on several points, including the fact that the minimum wages can increase as early as December 2023: the minimum wage can increase by 15 percent, to HUF 266,800, and the guaranteed minimum wage can increase by 10 percent, to HUF 326,000, Márton Nagy of the Ministry of Economic Development (GFM) announced ) leader.

The parties make a recommendation to the effect that, taking into account the opportunities in the competitive sector, the real value of wages must be preserved in 2024, and therefore every enterprise is encouraged to raise wages further in accordance with its own business, financial and wage market situation.

Negotiations are starting on the concept of renewing the wage system in such a way that wages can maintain their purchasing power in the long term, the ministry wrote in its announcement.

The Minister of Economic Development Márton Nagy also participated in the meeting, who welcomed the decision and indicated that the government will discuss the proposals and create the necessary legislation as soon as possible.

The minister also thanked the representatives of the employers' and employees' sides for the fact that the negotiations were almost entirely carried out in the spirit of cooperation.

At the same time, he noted with regret that the Hungarian Trade Union Federation - obviously for political reasons - tried to hinder the agreement by ignoring the interests of the employees and in the end did not even sign the agreement, says the ministry.

Márton Nagy assured the participants that "the government will continue to do everything in its power to offset the negative effects of war and sanctions, protect families, strengthen the Hungarian economy and increase the competitiveness of domestic businesses". The head of the ministry emphasized that 2023 is the year of reducing inflation, and 2024 is the year of restoring the economy. The funds are stable, positive news and developments affecting families and the economy continue to arrive, the announcement states.

The government, among other things, reduced inflation to single digits by October with measures such as online price monitoring and mandatory campaigns. In the third quarter, economic growth began to recover, as the economy expanded by 0.9 percent compared to the previous quarter.

Márton Nagy added that the invigoration of demand may also contribute to economic growth in the future, as there is a good chance that real wages may have started to increase again from September, which may be further enhanced by the very significant increase of the minimum wage and the guaranteed minimum wage in December. The government's goal is to maintain and support the dynamic increase in wages in order to increase real wages by 4-5 percent next year.

"As in previous years, the salaries of families may be worth more and more," said the minister.

MTI

Cover photo: Minister of Economic Development Márton Nagy
Source: MTI/Márton Mónus