Another wage explosion is on the brink. It is almost safe to assume that the domestic minimum wage will rise above 10 percent in 2025 after this year's 15 percent. 

The net average salary in Hungary in 2025 may approach half a million forints, and even a lower wage dynamics than the current one is sufficient for this. The minimum wage is likely to increase by more than 10 percent next year, which guarantees that domestic wage outflows will continue to be strong, Világgazdaság reported .

The paper reminded that a new multi-year wage agreement is on the horizon between the entrepreneurs and the trade unions, similar to the 2016 agreement, which could largely determine the wage dynamics of the next period. Although the social partners never like to talk about specific amounts and proportions at this stage of the negotiations, especially now, when systemic changes are expected,

it is almost safe to assume that the domestic minimum wage will rise above 10 percent in 2025 after this year's 15 percent.

Raising the guaranteed minimum wage is already a more difficult issue, as it affects many more employees and companies, in any case, the two wage elements can still be expected to push the entire wage scale ahead of them, directly affecting the earnings of nearly 2 million workers. This has also resulted in double-digit average earnings growth in recent years, which is a serious possibility based on current trends.

According to Világgazdaság's calculations, even with a 9 percent increase, we would approach the net average of half a million, but the government plans to increase the amount of the family tax allowance in 2025, which in the case of families with children will result in a higher net salary, thus even higher than the net salaries we could see an upswing, as with gross wages. In addition, the salary outflow can also be supported by increases in the public sector, since the salary of teachers will continue to rise on January 1st, and their earnings may increase by an average of 21 percent. Since it is a huge circle, about 140 thousand people, their salary increase can have a big impact on the wage dynamics - szeged.ma observed

about the exact calculations and the increase in the median wage HERE .

Cover image: MTI/Imre Faludi