Hungary’s minimum wage is a key element in the country’s economic and social policy. This article looks in detail at the current level of the Hungarian SMIC, its recent evolution and its position in relation to other European Union countries.
Hungarian minimum wage levels and trends
In 2024, the minimum wage in Hungary is 696.97 euros gross per month. This represents a significant increase on previous years. As a result, the Hungarian minimum wage has been rising steadily:
- 487 euros in 2020
- 442 euros in 2021
- 542 euros in 2022
- 579 euros in 2023
This development is part of the Hungarian government’s proactive policy to stimulate consumption and improve workers’ purchasing power. Increases have been particularly marked in recent years, including :
- A 15% increase in 2018
- Increases of 8% in 2019 and 2020
It should be noted that the Hungarian system provides for two levels of minimum wage: the basic minimum wage and the qualified minimum wage, the latter being higher for workers with certain qualifications.
Since 2010, the determination of the minimum wage in Hungary has been the responsibility of the Permanent Consultation Forum between the Government and the Private Sector (VKF). The aim of this mechanism is to ensure dialogue between the various economic players in order to set a fair minimum wage.
Comparison of the Hungarian minimum wage with the European Union
Despite recent increases, the Hungarian minimum wage remains one of the lowest in Central Europe. Only Romania has a lower minimum wage in this region. To better understand Hungary’s position, here is a table comparing gross monthly minimum wages in some EU countries in 2024:
| Country | Gross monthly minimum wage (in euros) |
|---|---|
| Luxembourg | 2387,40 |
| Germany | 1987,00 |
| France | 1747,20 |
| Poland | 882,33 |
| Hungary | 696,97 |
| Romania | 663,78 |
This comparison highlights the significant gap between Western Europe and Central and Eastern Europe. It is essential, however, to take into account the cost of living in each country when assessing the real purchasing power of minimum wage earners.
In Hungary, the net minimum wage represents around two-thirds of the gross wage after deduction of compulsory deductions. On the other hand, the Hungarian SMIC is equivalent to approximately 44% of the average wage in the country, indicating a relatively wide wage gap within the working population.
Impact of the SMIC on the economy and employment in Hungary
The level of the minimum wage in Hungary has a significant impact on various sectors of the economy. Some sectors, such as catering, textiles and agriculture, employ a high proportion of workers paid the minimum wage. This situation can sometimes cause difficulties for companies, particularly in terms of competitiveness.
Faced with recruitment challenges, Hungary has adopted a policy of openness towards foreign workers, particularly those from Asia. This strategy is aimed at overcoming labor shortages in certain sectors. In this context, finding a job in a foreign country can be an interesting opportunity for skilled workers.
To attract and retain talent, some Hungarian companies have opted for a wage policy slightly above the minimum wage. This approach enables them to stand out on the job market and retain their employees. On the other hand, it also raises questions about the long-term sustainability of such practices for small and medium-sized companies.
The evolution of the minimum wage in Hungary raises important issues for human resources management. Companies have to adapt their wage policies while preserving their competitiveness, which may require adjustments to their organization and production processes.
Future prospects for the Hungarian minimum wage
The future evolution of Hungary’s minimum wage will depend on a number of factors, including :
- The country’s economic growth
- Inflation and cost of living
- Government policies
- Pressure from social partners
- Competitiveness of Hungarian companies on the international market
The Hungarian government will have to strike a delicate balance between improving workers’ living standards and maintaining a business-friendly economic environment. Discussions within the Permanent Consultation Forum (VKF) will play a key role in determining future minimum wage increases.
Economic convergence with other EU countries remains a long-term objective for Hungary. This could mean a steady rise in the minimum wage over the coming years, although the pace of this development remains uncertain.
Ultimately, Hungary’s minimum wage reflects the economic and social challenges facing the country. Its future development will be decisive for the purchasing power of Hungarian workers and the competitiveness of the national economy in the European context.