Hungarian cabinet proposes 30% wage hike in central administration

The government has proposed a draft law for raising the wages of employees in the central government administration by 30%, state secretaries Katalin Novak and Balazs Orban announced at a press conference. The wage hike will be implemented as of January, if adopted by the parliament. As we reported, the government launched 6,810 staff cuts in the central administration in October. The redundancies were expected to be completed by the end of the year and the government explained that it will use the related spending savings to hike the wages of the remaining employees. The draft bill also included family-friendly measures, including possible part-time work and higher child allowances. There was no information at this stage about the specific budgetary cost of the measure and whether it will be indeed fully offset by the earlier staff cuts.

The proposal will also establish a new center for administration staff management,Balazs Orban announced. It will ensure that no redundant bureaucracy is created in the future, he pointed out. This is another step towards improving Hungary’s competitiveness and reducing bureaucracy, he stressed.

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