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Effective Minimum Wage in Hungary among the EU Average
The Hungarian effective minimum wage is in the midfield in the European Union, the Ministry for National Economy announced. According to the ministry, some media outlets like to present Eurostat statistics as showing that Hungary is in second to last
The Hungarian effective minimum wage is in the midfield in the European Union, the Ministry for National Economy announced.
According to the ministry, some media outlets like to present Eurostat statistics as showing that Hungary is in second to last place in the EU in terms of minimum wages. “In the absence of proper interpretation of the data and presentation of the full picture, unprofessional and highly distorted comparisons are made,” they said.
The ministry explained that in contrast,
the real picture is shown by the effective minimum wage: a weighted average of the minimum guaranteed salaries and the minimum wage. In Hungary, the minimum wage is based on a two-tier system, unique in Europe.
The statement stressed that there is no guaranteed minimum wage system similar to the Hungarian one in EU countries, thus the comparison should be made using an appropriate methodology. This means that, in addition to the minimum wage, the guaranteed minimum wage should also be taken into account, especially as more than twice as many people receive minimum guaranteed salaries as the minimum wage.
Fact
The main difference between the minimum wage and the guaranteed minimum wage is the group of workers to which they apply. While the minimum wage applies to all workers in general, the guaranteed minimum wage applies only to skilled workers. The guaranteed minimum wage provides a minimum wage for skilled workers that is higher than the basic minimum wage.They noted that minimum wages in Hungary have now increased more than 3.6 times compared to 2010, with the minimum wage in the country reaching HUF 266,800 (EUR 670 / 1 EUR=398 HUF), the guaranteed minimum wage HUF 326,000 and the effective minimum wage around HUF 306,000.
Minimum wages average HUF 482,000 in the EU, with the Hungarian effective minimum wage ranking 17th in the EU and among the top in the region, ahead of the Czech Republic, Slovakia, Romania and Bulgaria.
Via MTI, Featured image: Pixabay
The post Effective Minimum Wage in Hungary among the EU Average appeared first on Hungary Today.
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