Slovenia, Hungary

The EIRO industrial relations observatory reports that the government and social partners have agreed new minimum wage rates including a new three-tier minimum wage system. For 2006 the government has recommended a 10.5% increase to HUF 63,000 (254 euros). The second rate for jobs requiring a vocational qualification will be 10% higher at HUF 70,000 and the third minimum wage rate will be another 10% higher at HUF 77,000 for jobs requiring a degree. The Ministry of Finance has also indicated the level of minimum wages up to 2010, with the lowest rising to 90,000. Union targets for the minimum

After the threat of strike action employers in the electricity industry agreed a 4.5% pay increase for 2006. Although ahead of inflation (currently around 2%) the deal acknowledges high productivity growth of around 10%. The deal also includes a minimum monthly salary for the industry of 63,500 HUF (240 euros).

A change in legislation means that the national minimum wage is now set by an annual formula rather than as the result of tripartite consultation. The increase each year will be determined by the level of inflation and the nationally agreed pay rises for the public and private sectors. This year's increase is 2% for the year from 1 August to 31 July 2007. Trade unions had wanted a change in the law to establish the national minimum wage more firmly and not have it called into question in the annual negotiations. However, they did not want the annual increase to be removed from the tripartite

The industrial relations observatory EIRO reports that a new public sector agreement should be in place by the beginning of 2008 after five years of negotiations between the government and trade unions. The public sector will be covered by this general collective agreement and then specific agreements will be negotiated in different sectors. The main provisions of the agreement allow for four pay increases between 1 January 2008 and 31 March 2010 with one official estimate forecasting real increases in pay of 4.2% in 2008, 3.3% in 2009 and 4.8% in 2010. The agreement will also bring pay rates

The six union confederations in Slovenia organised a demonstration over pay, arguing that workers deserve higher pay increases in the light of rising company profits and higher inflation. An estimated 70,000 joined the march - the biggest demonstration in Slovenia for 15 years. The unions say that strike action could follow in January if the employers don't increase their pay offer. [Read more at > Slovenia government news site (EN)->http://www.ukom.gov.si/eng/slovenia/publications/slovenia-news/5663/5675/] [And at > eux news site (EN)->http://www.eux.tv/article.aspx?articleId=17870] [And for

After lengthy negotiations a new salary system was introduced across the public sector this year. One of the aims of the reform was to establish a fairer and clearer salary structure for public sector workers, recognising that some groups were particularly worse off. The agreement included provisions to make some of the bigger wage adjustments over a longer period – up to 2011. However, the new system has been subject to criticism by several different groups of workers and is now the subject of a constitutional court case taken by a trade union representing child care, education and research