The Association of Hungarian Trade Unions (MASZSZ) considers that a mid-year minimum wage increase is inevitable, as the current known and predicted inflation rate leads to a year-round real wage decrease, which mainly affects low-wage earners. Too bad, the association wrote in its statement Friday.
In a statement sent to MTI, it is highlighted: In the last consultation between the Competition Department and the Government’s Permanent Consultative Forum (VKF), the unions jointly recalled that the parties had undertaken to secure real wages in the 2023 wage agreement. Essentially, a mid-year increase. Robert Slotty, The head of MASZSZ recalled that at the end of last year’s agreement on this year’s minimum wage, all negotiating partners agreed and signed the Declaration of Intent.
Real value of wages should be maintained in 2023 considering the possibilities in competitive sector. The parties encourage each company to increase wages in line with its own business, financial and wage market conditions in order to protect real wages.
The agreement at the time stated that if economic processes differ significantly compared to current projections (especially if the average rate of inflation in 2023 exceeds 18 percent), they will renegotiate with half a year. Macroeconomic and business data are the provisions of this agreement – he emphasized.
In the notification, MASZSZ, in the general consumption structure of families of minimum wage earners, the combined share of expenditure on food and energy consumption is higher than the average, the rate of increase in inflation is at least 1 higher than the average rate. Percent, according to Central Statistical Office (KSH). Taking this into account, inflation among low-wage earners would be higher at 19 percent, compared with the projected average of 18 percent.
Unions expect partners, employers and government signatories to comply with the agreement and wage revision negotiations will begin accordingly.
– said the head of MASZSZ. Regarding employers’ concerns published in the press, Robert Slatty said: Employee representatives are also aware that mid-year pay rises represent another burden on companies, but they want nothing more than the wages they need for a decent living. and upholding and implementing the spirit of the agreement.