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← Overview Database of Innovative Social Policies in Europe

Increase of National minimum wage

Country of implementation
Hungary
General short description of the innovation
Minimum wage was increased in January 2009 but the increase was below the expected 4.5% inflation rate. Increase in the national minimum wage by 3.6% from 1st January 2009. Increase by 2.8% from 1st January 2010. From 1 January 2009, the national minimum wage amounted to HUF 71,500 (239).
Target group
Total Population
Policy Field
  • employment
  • wage
Type of Policy
  • public
Duration of the policy
Starting date: Jan 2009
Scope of innovation
  • Scope: structural
  • Budgets: cannot be interpreted in that context
  • Number of intended beneficiaries: Approximately 15% of the employed, 564 000 persons
  • Spatial coverage: national
General description of (intended) objectives and strategies
Social protection measure, ensuring social safety for the low income groups. It worth noting that the minimal wage in Hungary is less than the official minimum of subsistence
Nature of the innovation-long-term perspective
long term
Type of ideal-typical strategy for the innovation
  • typical strategy for the innovation (optional; according to Obinger)-encompassing security
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • regulations of the labour market
  • wages
Clarification of intended mechanisms, outputs and outcomes (optional)
Regulation of the labour market, ensuring social security for the low income labour market groups. / /
Intended target group
Low income employed, low income employed
Working age population
  • main source of income: paid work
Employers-private institutional actors
: all enterprises and organizations employing people at minimum wage
Actors involved in policy-making/implementation and/or evaluation
  • making/implementation and/or evaluation-agency or national social insurance body
  • making/implementation and/or evaluation-central state
  • making/implementation and/or evaluation-employees (organised or individual)
  • making/implementation and/or evaluation-employers (organised or individual)
  • making/implementation and/or evaluation-private for-profit organisations (commercial)
Intended output
  • regulation of the labour market
  • wages
Intended and unintended outcomes
all employees with minimum wage
Clarification of outcomes in terms of impacting resilience and labour market inclusion
The measure is thought to cause increase in unemployment and in work partially or fully undeclared. / /
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