Varga and Parragh agreed that state assistance is needed to help small and medium-sized businesses cope with paying a higher minimum wage, and opportunities for compensation, such as further tax cuts, are being considered, the finance ministry said in a statement on Wednesday.

Referring to consultations with both employers and employees, the minister said that there was “broad consensus” concerning a minimum wage hike, and pledged the government’s assistance to SMEs, which would be most impacted by the measure.