Wage convergence is underway! Everything you need to know about the minimum wage and the guaranteed wage minimum

According to calculations obtained by Portfolio, next year, regular gross average earnings may increase by around 9%, while the minimum wage will rise by 11%, and the guaranteed wage minimum by 7%.

The gross minimum wage will increase to HUF 322,800, and will increase again to HUF 373,200 in January 2026.

Meanwhile, government calculations suggest that half of the average gross wage could be HUF 356,460.

This could reduce the gap between the minimum wage and half of the ex-bonus gross average wage to around 10% (9.44%), as the lowest wages are expected to grow faster than average earnings. This would bring us closer to the EU directive stipulating that the minimum wage should reach half of the gross average wage.

As reported by Portfolio, the parties discussed increasing the minimum wage by 10–11% and the minimum salary by 7–8% at the Permanent Consultation Forum between the Competitive Sector and the Government (VKF). Ultimately, the agreement resulted in an 11% increase in the minimum wage and a 7% increase in the minimum wage for skilled workers.

With inflation at 4%, this will mean a real wage increase for those on the lowest incomes. The minimum wage will also approach the average wage,

Imre Palkovics, President of the National Federation of Workers' Councils, told Portfolio.

Ferenc Rolek, Vice :resident of the National Association of Employers and Industrialists (MGYOSZ), said: "A good agreement was reached, given the circumstances."

However, a wage increase of one or two percentage points lower would have been more realistic,

he added. He also said that the economic outlook had not changed, and therefore urged companies to be cautious in local wage negotiations.

Ferenc Rolek added that companies must now act sensibly and avoid letting wages spiral. "Employers will find themselves in a difficult situation because last year's wage negotiations were already characterised by a sharp increase in the minimum and guaranteed wage minimum, which pushed up wage demands from trade unions and employees alike, as they view the rate of increase in the lowest wages as the benchmark."

Róbert Zlati, President of the Hungarian Trade Union Confederation, said: "A week ago, it turned out that the government would not contribute to the wage increase by reducing the social contribution tax. Under these circumstances, it became clear that the wage increase could not be any higher. Today, the trade union confederation decided to support this, so we will sign the wage increase agreement next week."

According to the President of the Hungarian Trade Union Confederation, the biggest problem for employers in the current wage negotiations is that the existing agreement has increased employees' expectations of their average wage.

"This year, the average wage increase was over 9% again, even though the minimum wage increase for 2025 was "only" 9%, and the guaranteed wage minimum increase was 7%. Wage increases at companies may be more modest next year, as rapid economic improvement is not expected. During current local wage negotiations, employers are often offering increases below the rate of inflation. Nevertheless, there are a few companies in the manufacturing industry where above-inflation wage increases have been agreed," summarised Róbert Zlati.

According to László Perlusz, Secretary General of the National Association of Entrepreneurs and Employers (VOSZ),

everyone went right up to the wall during the negotiations.

He estimated that the purchasing power of the guaranteed wage minimum could increase by around 3%, and that the real value of the minimum wage could increase by up to 6%. This could significantly boost consumption next year.

Cover image (for illustration purposes only): Getty Images