The agreement, achieved through collaboration between employers, employees, and the government, includes phased minimum wage increases of 9 percent in 2025, 13 percent in 2026, and 14 percent in 2027, resulting in a cumulative rise of over 40 percent. Reflecting optimism for peace and economic recovery, the agreement is set to bolster living standards while fostering national growth.
Facing significant pressures from inflation and the ongoing war in Ukraine, the prime minister emphasized the challenges that shaped the agreement. He noted that these external factors have strained Hungary’s economy but stressed the importance of planning for a peaceful and stable 2025. “This wage increase cannot be sustained if we operate as we have in the past,” PM Orbán stated, highlighting the need for innovation and productivity improvements across all sectors. He also reassured stakeholders that the agreement includes provisions for renegotiation if unforeseen circumstances arise, ensuring flexibility to address future economic challenges.
The agreement aligns with European directives that seek for minimum wages to reach 50 percent of average wages, which PM Orbán described as essential for securing better living standards for workers. To support employers, particularly small and medium-sized enterprises (SMEs), the government will implement targeted measures such as the Demján Sándor Program, which will provide HUF 1.4 trillion in funding to help businesses adapt and innovate. Additionally, a new Workers’ Loan Program will assist young employees in achieving financial independence, with a focus on housing support.
PM Orbán linked the wage agreement to Hungary’s broader economic vision, recalling the government’s earlier success in creating 1 million new jobs within a decade. He expressed confidence in achieving the next major goal: raising Hungary’s average wage to HUF 1 million. This ambitious target is supported by projections of over 3 percent GDP growth in 2025 and a substantial public investment boom, including 300 new projects valued at HUF 8.1 trillion. Notable initiatives such as the Budapest-Belgrade railway and major industrial developments in Győr, Szeged, and Debrecen are expected to significantly enhance Hungary’s production capacity.
In his remarks, PM Orbán praised the unity and commitment demonstrated during the negotiations. He stressed that “none of us can prosper unless Hungary as a whole prospers,” noting that the agreement exemplifies the collaborative spirit necessary for national progress.
This historic agreement not only secures substantial improvements for workers but also sets a precedent for cooperation and resilience. By aligning immediate wage growth with long-term economic strategies, Hungary is taking a decisive step toward sustainable development, reflecting its determination to thrive amidst challenges and emerge as a leader in Europe’s recovery efforts.