If you are wondering about the minimum wage in Hungary, read this article first. You’ll learn how much you can earn, the average salary, and whether there are any changes in the minimum wage. Also, learn about the minimum wage increase in Hungary. We’ll cover the minimum wage in Hungary for both private and public sector employees. This country offers a minimum wage of €5 per hour. Its minimum wage is higher than the European average.
The average salary in Hungary
The average salary in Hungary varies widely depending on your profession, skills, and employer. Generally, salaries in the service sector are the highest paying. The average monthly salary in Hungary is EUR 1,270, or HUF 490,000, in 2018. In the future, the average salary in Hungary is expected to reach EUR 500,000. In the meantime, you can earn up to EUR 1,275 as a university student. The following chart shows the average salary in Hungary by profession.
While the countryside is relatively inexpensive, most ex-pats choose to live in cities such as Budapest. The price of medical care is very affordable, ranging from $200 to $350 for a general checkup. X-rays, however, cost around the same amount. If you’re interested in moving to Hungary, be sure to check out the average salary in Hungary before making the decision. This information will help you plan your lifestyle and budget accordingly.
While many countries are catching up to their European neighbors, Hungary has a relatively low cost of living. The average monthly rent in Budapest is 150,000 HUF, so even on a minimum wage salary, you would spend almost two-thirds of your paycheck on rent. Similarly, utilities can cost another 30,000 to 40,000 HUF per month. While the average monthly salary in Hungary is only 562,000 HUF, it’s comparable to Germany and Poland.
The minimum wage in Hungary is seventy-nine thousand HUF per month. The government plans to increase this to eighty-one thousand HUF by 2022. On average, Hungarians earn between USD 22,576 and $2714 a month. The cost of living in Hungary is considerably lower than in other Western European countries. In Budapest, a meal at a restaurant costs only about 2,500 HUF, while a cappuccino costs around 400 HUF. A monthly pass for public transportation costs 1,600 HUF.
Although Hungary’s median income is higher than the national average, the difference between the two is not that big. There are many people who earn more than the median, but the lowest-earning 25% make less than this amount. This means that the average salary in Hungary is only 562,300 HUF higher than the median. If the top one percent of the population earns twice as much as the rest of the country, it will push the median value even higher.
Household net wealth refers to the total value of a household’s assets, including the amount of money in a bank account, the value of a principal residence, and any other real estate properties. Housing costs are an important part of any budget and are estimated to account for about 20 percent of a household’s net adjusted disposable income (GAD).
Guaranteed minimum salary
The increase in the minimum wage is the most important measure in Hungary over the last decade. It will affect 42 percent of corporate employees and is split equally between those who receive minimum wages and those who receive a guaranteed minimum salary. This will mean that there are now 443 thousand of people who earn a minimum wage or guaranteed minimum salary in Hungary. Although this raise will increase the income of the workers, it will also place additional requirements on them.
The Hungarian government has determined the official minimum wage for skilled and unskilled workers for 2022. The salary is currently HUF 200,000 per month gross. The minimum wage is also non-taxable, so employers can give employees 20,000 HUF tax-free every month. As of 1 January 2022, the government will increase the guaranteed minimum salary and minimum wage to two hundred and sixty thousand HUF. As the minimum wage rises, the base for the minimum contributions will also increase.
Hungarian workers will receive a HUF 200,000 guaranteed minimum salary, and this amount will increase if the economy improves over the next decade. In the meantime, employers will benefit from tax breaks to compensate for additional expenditures. However, the government must remember that the increase will directly affect approximately 34% of the corporate sector. However, if the Hungarian government keeps its word, this increase will become permanent. There are no other significant changes to the minimum wage in Hungary, but there are still several important measures that are needed to ensure that the minimum wage is raised.
The Hungarian government also gives employees paid leave. Unemployment benefits are only available to those who have worked in Hungary for two years. The maximum length of unpaid leave is 90 days. Employers must also provide a written reason for terminating employees during their unpaid leave. The minimum salary is higher for employees who have taken parental leave. But it does not mean that employers should stop paying their employees once they are on leave.
Another factor that influences the salaries of Hungarian workers is their level of experience. More experience means higher wages. However, the percentage of the increase decreases as the employee gains experience. The average salary of an employee with two to five years of experience is 32% higher than that of a fresher and junior. A person with ten or fifteen years of experience makes approximately 16% more than those with two to five years of experience.
Employees in Hungary are also entitled to paid breaks, which last between 30 and 60 minutes in an average workday. In addition, employees are guaranteed a certain number of paid days off each year, as well as paid holidays and sick leave. In addition, the employer and the social security funds also provide sick leave and holiday leave. These benefits are available to all employees who work in Hungary. Further, employees on probation do not have the right to severance pay.
Increases in the minimum wage
A recent announcement by the government of Hungary raised the minimum wage by nearly 20% in the next election year. According to the ministry of innovation and technology, the increase will allow employers to improve employee wages by using the savings from the tax cuts. In addition, the minimum wage will now be higher than it was last year, with a guaranteed hourly wage of HUF 1,259 per hour. Nevertheless, this increase will not be enough to offset regional differences.
Besides the minimum wage, other aspects of the payment have been changed. The minimum wage is now linked to childcare fees and is worth 70 percent of the former income of the parent. Starting in January, this figure will be HUF 234,360. The increase is intended to help parents pay for childcare expenses, as well as grandparents who have children. In addition, the Treasury pays unemployment benefits for people unable to work. This doesn’t affect payroll costs.
The minimum wage in Hungary is currently 7% higher than the national average, but some experts point to the historical increase as an appropriate response to the high costs of living. The country’s inflation rate is forecasted to be at or below 5% in 2021, making it one of the highest in Europe. As a result, the minimum wage in Hungary is likely to rise in the coming years. Although this is a significant increase, it may not be enough to bring the country out of its current state of economic decline.
In addition to the minimum wage, the government also extends a local business tax ceiling of 1% for qualifying small and medium-sized enterprises in the future. The threshold is HUF 4 billion, or about eleven million. This tax ceiling is beneficial for many small and medium-sized companies and has helped to reduce the costs of running a business. The government hopes to achieve these goals by providing a level playing field for these businesses.
Although these studies indicate that increasing the minimum wage in Hungary improves employment prospects, they do not necessarily increase the unemployment rate. The increase is unlikely to increase unemployment in Hungary, but it may improve the welfare of the unemployed and help them to obtain better jobs. As the minimum wage in Hungary is already higher than the national average, it will benefit employers and employees alike. The minimum wage also promotes economic growth. But the effect is ambiguous in terms of how the increase affects employment and unemployment.
In addition to increasing salaries, raising the minimum wage will also increase the purchasing power of the average worker. This will have a knock-on effect on companies, which have to recalculate their budgets and margins in order to make the changes work. As a result, wages will rise faster than salaries, which will lead to an inflationary spiral. It’s therefore critical for business owners to plan carefully when planning their budgets and margins for the next year.