Hungary to tie minimum wage hike to tax cut

Tax cuts are continuing and public burdens on work will decrease, the minister told Magyar Nemzet. The government would like to tie the tax cut to a minimum wage hike, he said.

The government plans to make a multi-year wage agreement with representatives of employers and employees and has started preparing the deal,

Varga said. The cabinet wants an agreement that sets an annual minimum wage hike and also governs how taxes on labour, in particular the social contribution tax (szocho) paid by employers, will decrease until at least 2024.