A "significant" minimum wage hike is needed to retain Hungary's current advantage against other European countries in restarting the economy after the coronavirus pandemic, Finance Minister Mihaly Varga said after talks with Laszlo Parragh, the head of the Hungarian Chamber of Commerce and Industry.
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.
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.