According to Portfolio, this disparity reflects not only the economic development of the country but also its GDP per capita and overall wage levels. While Hungary achieves 76.7% of the EU average in terms of purchasing power parity, the Czech Republic and Slovenia exceed 90%. This suggests that Hungary’s economy faces structural challenges that hinder faster wage growth.
The issue of Hungary’s minimum wage is further compounded by internal inequalities. For instance, while the average net income in Budapest was nearly HUF 500,000 (EUR 1,200) in 2023, the average in smaller towns barely exceeded HUF 296,000 (EUR 715), as reported byHaszon.hu. This income gap exacerbates the economic divide between regions within the country.
The future of the Hungarian minimum wage
Raising the minimum wage and enhancing regional competitiveness are crucial for Hungary. Although slower economic growth and high inflation present challenges to rapid change, the examples of neighbouring countries demonstrate that catching up is possible with appropriate economic policies. However, beyond raising the minimum wage, Hungary must restructure its economy, improve investment efficiency, and address inequalities to ensure sustainable growth.
Overall, Hungary’s minimum wage remains among the lowest in the EU, surpassed only by Bulgaria’s. Regional competitors such as Romania, Slovakia, and the Czech Republic are already ahead, highlighting the need for substantial reform in Hungary’s economic structure and wage policies. The low minimum wage not only impacts living standards but also poses a long-term challenge to the country’s competitiveness.
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Publish date : 2025-01-13 22:35:00
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