A boost for fair pay: EU court ruling supports Hungary’s rising wages

On 11 November 2025, the Court of Justice of the European Union (CJEU) upheld the validity of the Directive on Adequate Minimum Wages, confirming that its core provisions remain in force across the EU. The Court annulled only limited clauses: a detailed list of criteria Member States must follow when setting statutory minimum wages, and a rule banning decreases of minimum wage via automatic indexation. Importantly, the Directive’s main requirement remains, i.e. Member States must aim for minimum wages that ensure a decent standard of living, for instance, using reference thresholds like 50% of the median wage or 60% of the average wage.

Moreover, the ruling reiterates that collective bargaining and social dialogue are central: states must promote collective agreements as part of wage-setting policies. In Hungary, the statutory minimum wage for 2025 was set at HUF 290,800 gross per month, and the guaranteed minimum wage for skilled workers at HUF 348,800 gross.  While national law remains responsible for determining wage levels, after the CJEU ruling, Hungary’s wage policy must respect the overarching EU framework on fairness and adequacy. This creates stronger legal grounding for preserving or raising minimum wages, preventing arbitrary reduction through indexation rules.

Finally, the ruling may influence forthcoming wage debates in Hungary, especially as social partners are currently negotiating new minimum-wage levels for the next period. With expected increases of roughly 10–11% for the minimum wage and 7–8% for the guaranteed minimum wage, the Directive’s principles may serve as a supportive legal backdrop for arguments in favour of higher wage floors and stronger labour protections.

In sum, the CJEU decision does not prescribe any concrete wage rise in Hungary, yet by reaffirming the Directive’s validity and underlying standards, it reinforces the legal and policy environment in which the ongoing wage negotiations are taking place and supports efforts to ensure that statutory wages reflect a genuinely decent standard of living.