Higher salary thresholds set for 2017
14 Dec 16
IMPACT – LOW
What is the change? Hungary has announced new minimum wages for 2017.
What does the change mean? Unskilled workers must earn a minimum of 127,500 forints per month (about US$430). Skilled workers must earn a minimum of 161,000 forints per month.
- Implementation time frame: Jan. 1.
- Visas/permits affected: All work permits.
- Who is affected: All employers.
- Business impact: Employers should plan for the higher thresholds and adjust any new salaries as needed.
Background: The 2017 minimum wages represent a 14 percent increase for unskilled workers and a 24 percent increase for skilled workers. The 2016 salary minimums are 111,000 forints gross per month for unskilled workers and 129,000 forints gross per month for employees with at least a secondary school education.
In addition to meeting minimum wages, companies that sponsor foreign employees and assignees must meet salary thresholds that are based on average salaries for the specific job.
BAL Analysis: Employers should factor the new minimum wages into their 2017 budgets.
This alert has been provided by the BAL Global Practice group and our network provider located in Hungary. For additional information, please contact your BAL attorney.
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