Corporate reactions to the raise of the minimum wage/guaranteed minimum salary of qualified staff
Our brief analysis examines the nine potential measures that can be reactions to the affects of the January 20191 raise of the minimum wage/guaranteed minimum salary for qualified staff. CEOs were asked to fill in the form below.
The raise of the minimum wage to HUF 149,000 and the guaranteed minimum salary of qualified staff to HUF 195,000 have resulted/will result in the following measures at your company in 2019:
- wages of those earning above the minimum wage are also increased to avoid wage pressure
- planned staff recruitment is cancelled
- redundancies are made
- projected investments are postponed
- employees entitled for a raise are given new duties
- employees entitled for a raise are reorganised to do part-time jobs
- other benefits (e.g. perks) of employees involved are cut
- variable pay (e.g. bonus) is decreased
- prices are increased
Of the above measures, CEOs generally preferred to increase prices: More than one third (38%) of them have opted for that solution or responded to increase prices later this year. 32% of respondents reported the cancellation of planned staff recruitment. 30% of CEOs have given - or are planning to give - a raise this year to employees earning above the standard minimum wage in order to avoid a wage pressure. One quarter (25%) of the surveyed companies are planning to postpone projected investments. 15% and 13% of companies respectively chose to decrease fringe benefits and variable pay (e.g. bonuses). About one in ten businesses (12%) will redirect employees to part-time employment.or modify the duties of those eligible for a raise (11%). Redundancy was the least common reaction, performed by only 5% of surveyed companies.
You can read more by clicking the attachment below