But what is the guaranteed minimum wage?
From January 1, in Hungary the minimum wage rose by 11%, and the guaranteed minimum wage by 7%, and alongside the minimum wage increase, the amounts of numerous social benefits are also increasing, the Ministry of Economic Affairs announced.
As a result of a unanimous agreement between the government and employee and employer representatives, the minimum wage has increased to 322 800 forints (≈ 843 EUR) and the guaranteed minimum wage has increased to 373 200 forints (≈ 975 EUR), the statement said.
Thanks to the raise, those earning the minimum wage will receive about 32 000 forints (≈ 84 EUR) more per month gross, and skilled workers at the guaranteed minimum wage will get 24 400 forints (≈ 64 EUR) more gross income.
“The government’s goal remains unchanged: in the next period the minimum wage should reach 1 000 EUR (≈ 383 500 HUF) and the gross average wage should reach 1 000 000 forints (≈ 2 610 EUR), strengthening the appreciation of workers and the financial security of Hungarian families,” the ministry wrote.
What is the guaranteed minimum wage?
In Hungary, there are effectively two types of minimum wage. There is the classic minimum wage, which applies to everyone and sets the lowest amount anyone may legally be paid. There is also the guaranteed minimum wage, which also applies to many employees.
The guaranteed minimum wage is the legally prescribed lowest wage that must be paid to every full-time worker who works in a job that by law requires at least a secondary education.
Both conditions (job and qualification) must be met together.
One purpose of the guaranteed minimum wage, introduced in 2006, is to ensure that the wages of skilled workers are higher than those of unskilled workers, and to encourage the attainment and recognition of qualifications.
