No agreement was reached on the 2021 minimum wage



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Negotiations will continue in January.

Due to the uncertainties caused by the epidemic, employers and employees have not yet reached a common denominator on the increase in the minimum wage and guaranteed minimum wage in 2021, the Ministry of Innovation and Technology (ITM) said after a meeting with workers and entrepreneurs Thursday. The government is interested in reaching a compromise agreement, so negotiations will continue in January at the Permanent Consultation Forum of the Competition and Government Sector (VKF).

As written, the VKF met 24 times in 2020, of which the agenda for a five-year year-end meeting included setting the next year’s minimum wage and the guaranteed minimum wage. The negotiations did not lead to an agreement, despite the fact that the proposals of employers and employees did not crumble in an insurmountable way. The deal was mainly hampered by economic uncertainties due to the coronavirus.

The Hungarian Nation wrote on Wednesday that the chances of reaching an agreement are very small. Unions would like a five percent raise, but employers would only be willing to raise three percent. The latter would only pay a larger amount if the government further reduced the social contribution tax, but this is not on the agenda.



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