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← Overview Database of Innovative Social Policies in Europe

Raise of minimum wage

Country of implementation
Hungary
General short description of the innovation
Minimum wage of unskilled workers was increased to preserve real value of net earnings. The measure was the resolution of the National Council for the Reconciliation of Interests (Orsz˙gos ?rdekegyeztet? Tan˙cs) for 2010. Guaranteed minimum wage for skilled workers and people with secondary-level education was increased in order to preserve real value of net earnings. The measure was the resolution of the National Council for the Reconciliation of Interests (Orsz˙gos ?rdekegyeztet? Tan˙cs) for 2010.
Target group
Total Population
Policy Field
  • employment
  • wage
Type of Policy
  • public
Duration of the policy
Jan 2010 - Dec 2010
Scope of innovation
  • Scope: temporary
  • Budgets: not interpreted
  • Number of intended beneficiaries: Approximately 15% of 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-short-term perspective
ensuring social security
Nature of the innovation-long-term perspective
ensuring social security
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
  • governance
  • 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
Employees with minimum wages
Working age population
  • employment situation (please specify: e.g. typical work/atypical/unemployed) (typical work)
  • family situation (married/separated/single)
  • income level (low/medium/high) (low)
  • main source of income: paid work
Employers-private institutional actors
all enterprises and organizations employing workers at minimum wages
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 wages
Clarification of outcomes in terms of impacting resilience and labour market inclusion
/ / The measure is thought (but not proved) to cause increase in unemployment and in work partially or fully undeclared. / /
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