BUDAPEST: Hungary will start a multi-year contribution reduction programme in January 2017, weekly newspaper Figyelő reported on Thursday. It has also learned, though, that in exchange of the measure companies will be required to raise wages, i.e. they may not pocket the sum they would win by the lowered burden.
According to government sources cited by the paper, the first phase of a contribution reduction programme for employees will take place in 2017 and 2018, and the scheme may extend to 2020, as well.
Employers earlier wanted a double-digit contribution cut over a few years, but the budget has no room for that and contributions will be reduced by a few percentage points annually, the paper said.
