The minimum wage will increase by 15% (to cca. EUR 420), while the guaranteed minimum wage for qualified employees will increase by 25% (to cca. EUR 530) in 2017. At the same time, the social insurance tax payable by the employers will drop from 27% to 22%.
The agreement among the partners of the labour market also includes a next step applicable in 2018: a further increase of the minimum wages by 8% and 12%, and a further drop of the social insurance tax to 20%.
These steps will have numerous impacts on the economy and the labour market.The tax wedge of the salaries will significantly decrease, improving the competitiveness of the Hungarian economy, and it can help keep the qualified workforce in the country.