It is expected to continue rising less pay The amount of this year, at the standing consultation forum meeting of the competition sector and the government at the end of August, employers also recognized that the wage correction was justified.
The information published in the newspapers, which assessed last week’s negotiations between unions and employers as ineffective, is incorrect.
– Draw attention to the Napi.hu query Melinda Butcher. The head of the Liga trade unions – who also participated in the meeting – stressed that the minimum wage correction is not a new proposal, as the conditions for a mid-year wage increase were set by the signatories to the wage agreement concluded at the end of last year.
It is necessary to correct the minimum wage
And Melinda Mezaros reminded that the minimum wage rose by 16% in January of this year, but annual inflation is expected to be higher than this, and this means that in the absence of correction, the lowest income earners and people who are entitled to social benefits They will suffer a real drop in wages. In order to avoid this, an increase in the minimum wage is needed in the middle of the year, which employers are not shy about either.
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In response to our question, the head of the association said that the parties have not yet been able to sign the additional agreement for this year. The main drawback is that final inflation data for the whole of 2023 will not be published before January. This data is crucial because it determines the extent of the increase in the minimum wage and the guaranteed minimum wage this year.
When can employees get extra money?
Liga’s trade unions have put forward several proposals so that it can conclude an additional agreement on an exceptional minimum wage increase with its employer as soon as possible – elaborates on Melinda Mzaros. He stressed: The wage increase applies to the entire year 2023, which means that if the negotiations that precede the agreement continue for a longer period, employees will not incur a loss until then.
The president of the association talks about the specific steps to increase wages He made three types of proposals, and the employer side was also open to these proposals:
- Both parties must agree on the basis of inflation expectations. The gist of the proposal is that the Hungarian National Bank or the Ministry of Finance apply to 2023 Inflation expectations On this basis, the social partners determine the degree of correction.
- also Based on prevailing inflation expectations The two parties conclude an additional agreement regarding the wage increase in the middle of the year, so that if the actual data differ, this will be done This difference should be taken into account in the minimum wage negotiations next year. This means that if inflation is higher than expected, next year the minimum wage will rise to a greater extent, and if it is lower, then to a lesser extent.
- Let the two parties jointly negotiate this year’s wage compensation and next year’s minimum wage increase. In this case, the amount that forms the basis of the negotiations is the hypothetical amount that was increased by adding this year, and the salary increase at the beginning of the regular year is added to this amount from January.
Melinda Mizaros also cautioned that there are several options for how employees can get the higher amount after the agreement.
The envelope could be really thicker in October
The trade union leader sees this as an opportunity for representatives of interests to agree on supplementing wages for this year as early as September. In this case, the affected employees will receive a higher amount from October. He mentioned an example
If a decision is made on a 1.5 percent correction by 2023, the minimum wage amount will increase further in October, November and December.
This means that employees will receive so much more in three months that they will not incur a loss in real terms for the year as a whole.
The Chair recalled that there was also the possibility of employees receiving lump sum compensation at the end of the year, but that this possibility was no less supported by representatives of employers’ interests.
It is significant that the increase in the minimum wage in the middle of the year will affect not only the approximately 250 thousand employees, but also the one and a half million people who receive some kind of social benefits.
Melinda Mezaros added that according to last year’s wage agreement, a correction is necessary, which employers have not been shy about, which is why there is a high chance of significant progress in the coming weeks.
Minimum wage before reform?
In the fall wage negotiations, it might also be proposed that instead of the current double minimum wage system, there would be a single mandatory minimum wage. In this case, the guaranteed minimum wage shall cease, and its amount shall be the new minimum wage. In this case, the lowest earners will get a wage increase of between 30 and 35 percent.
In response to the proposal, Melinda Mizaros indicated that there has been no substantive dialogue on the proposal yet, and employer representatives do not see the change as justified.
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