By: Quinnipiac Economics Research Team, Christopher Longchamp
As the new year starts, Hungary is raising the minimum wage to 200,000 HUF. The move comes from the Ministry of Innovation and Technology, as the country comes out of the COVID pandemic with a year of strong economic growth. There is a strong opinion on a nationwide consultation in which around 95% of people backing the reported increase to the minimum wage.
The new minimum wage is set to just above the average level of wages in 2010. The Hungarians can afford to increase wages as the country has seen its economy be one of the strongest in Europe during the COVID pandemic. The government is also encouraging businesses by reducing the wage taxes. The idea being that citizens can use the extra wages to help bolster the economy and continue economic growth.
This article is based on: https://hungarianinsider.com/agreement-reached-on-the-minimum-wage-8794/