Changes to Hungarian Labor Law

Bret Silverberg
by Bret Silverberg

Hungary is increasing its minimum wage by 15% in 2017 and 8% in 2018. The minimum wage for skilled workers will also increase by 25% in 2017 and 12% in 2018.

Additionally, the payroll tax will decrease in 2017 by 5% and by 2% in 2018.

Hungary is increasing wages and decreasing taxes in an effort to attract more workers. Many Hungarians have left to work in nearby countries, leaving Hungary with a labor shortage. Currently, unemployment is 4.9% and the annualized wage growth is 6.7%. Should the wage growth rate exceed 11% over the next 9 months, an additional 0.5% payroll tax decrease will take affect.

For the full story, visit Reuters.

Bret Silverberg

Bret Silverberg

Director, Content Strategy, Globalization Partners

Bret Silverberg joined Globalization Partners in April 2017. He has 10 years experience working in content marketing and publishing.