Hungary’s minimum wage has been raised once more, marking the next stage of a long-term wage growth strategy outlined by the government. The increase will have a direct impact on approximately one million workers and is expected to influence wages across various sectors, according to spokesperson for the Ministry of National Economy André Palóc.
Palóc highlighted that wage increases do not only benefit those on minimum salaries but also exert upward pressure on wages across the job market. He recalled that a three-year wage agreement was reached last year, resulting in an overall 40 per cent increase in the minimum wage by 2027. This year’s rise of 9 per cent will be followed by further increases of 13 per cent in 2026 and 14 per cent in 2027.
Since 2010 Hungary’s minimum wage has nearly quadrupled, rising from 73,500 forints to 290,800 forints, while the guaranteed minimum wage for skilled workers has more than tripled. Over the past decade, real wages have also consistently grown, with 2023 seeing the largest wage increases among low- and middle-income earners.
Palóc also noted that inflation, driven by global factors and European Union sanctions, had been successfully curbed in recent months. As a result, Hungary saw a 9.4 per cent increase in average earnings in 2024, with further real wage growth expected throughout the year.
Wage increases are not limited to the private sector. Public sector salaries have also risen significantly in recent years, particularly for doctors, nurses, police officers, and soldiers. In 2024 the salaries of teachers, educators, and kindergarten staff saw another substantial increase, demonstrating the government’s commitment to improving income levels across multiple professions.
Beyond salary adjustments, the government has introduced additional financial benefits, including a doubled family tax allowance and favourable loan schemes for young workers, offering tax-free income alongside a 4 million forint work-based credit programme.
According to Palóc, Hungary’s economy is now in a phase of recovery following the economic shocks caused by war and external sanctions. The government’s policies aim to further strengthen the economy and improve the financial well-being of Hungarian families.
With the wage agreement ensuring continuous growth through 2027, the government remains focused on increasing real earnings and stabilizing the economy. As part of its broader economic policy, a 21-point action plan is in place to ensure that wages maintain their purchasing power and continue to rise in the coming years.
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