Hungarian economy may not be strong enough for a 13% wage increase
According to the latest data by the Central Statistical Office (KSH), the gross average wage of full-time employees rose to HUF 704,400 and their net earnings went up to HUF 484,200 in June 2025. These figures correspond to an annual increase of almost 10%, while real wages rose 4.8%.
However, there are tensions lying under the increase in earnings, as the performance of the Hungarian economy casts doubts over the feasability of the 13% minimum wage hike planned for 2026. Due to the guaranteed wage minimum (for skilled workers), the raise would affect a lot more employees than just those earning the minimum wage, Index reported.
At the Permanent Consultation Forum between the Competitive Sector and the Government (VKF), both employers and employees asked the government to reduce the social contribution tax rate by a full percentage point. Economy Minister Márton Nagy did not exclude the possibility of meeting this request, but stressed that this would be tantamount to a tax break of some HUF 200 billion.
- Last week, the minister told RTL News that a double-digit minimum wage increase was realistic next year instead of the 13% hike.
- Prime Minister Viktor Orbán said a few days later in Kötcse that the government will 'defend' the plan of a 13% minimum wage increase.
- Then the Economy Minister told Index at the AI Summit that the government continues to work on a 13% raise to the minimum wage.
Márton Nagy warned that, in the longer term, wages cannot be divorced from productivity trends. For example, real wages are expected to rise by 4% this year, while economic growth is expected to be around 1%.
This has to come from somewhere; otherwise, companies will get into trouble,
he said.
Excise tax hike may be put off
The minister also announced that the cabinet was considering postponing the increase to the excise tax. Under the current rules, the tax is set to increase by 4.3% in January 2026, which would raise the price of petrol and diesel by HUF 9 and HUF 8 per litre, respectively. Putting off the increase in excise tax by six months would reduce the budget's revenue by HUF 10-15 billion, but it could help protect jobs and the economy, according to Nagy. He stressed at the event that
the delay would apply only to the excise tax on fuel.
Cover photo: Portfolio
