What is the change? Hungary has implemented new minimum wages for 2018.

What does the change mean? Unskilled workers must earn a minimum of 138,000 forints per month (about US$580). Skilled workers must earn a minimum of 180,500 forints per month.

  • Implementation time frame: Jan. 1.
  • Visas/permits affected: Work permits.
  • Who is affected: Employers, including those employing foreign nationals.
  • Business impact: Employers should plan for the higher thresholds and adjust any new salaries if necessary.

Background: The 2018 minimum wages represent roughly a 10 percent increase for unskilled workers and a 20 percent increase for skilled workers. The 2017 salary minimums were 127,500 forints gross per month for unskilled workers and 161,000 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 2018 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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