Agreement meant to boost wages to combat labour shortage
BUDAPEST (Reuters) — Hungary's government and private sector employers reached a broad deal on Tuesday to hike wages in the private sector while cutting the payroll tax paid by employers in an effort to boost wages as the economy struggles with a labour shortage.
The business news web site Portfolio.hu quoted Economy Minister Mihaly Varga as saying that the minimum wage will increase by 15 per cent in 2017 and another eight per cent in 2018, while the payroll tax will be cut by five and two percentage points in the next two years.
For skilled workers the guaranteed minimum wage, a higher wage category, will increase by 25 per cent in 2017, and another 12 per cent in 2018, Varga added.
