The Prime Minister of Hungary, Viktor Orban, announced an 11% increase in the minimum wage in 2026, despite the economic stagnation and financial challenges for companies.

The government has already implemented salary increases in the public sector to stimulate consumption. The minimum wage will reach 322,800 forints (approximately 988 dollars), and the minimum wage for skilled workers will increase by 7%. Analysts warn that companies will face difficulties in sustaining these increases, which could lead to rising prices or layoffs. Additionally, a deficit of 5% of GDP is estimated for 2025 and 2026, which could influence economic measures ahead of the April elections. The government has also introduced a housing subsidy program, with mortgages at reduced interest rates, and has capped prices on certain products to combat inflation.