Public servants in government offices earn starvation wages while top government officials enjoy soaring salaries

Since 2018, the salaries of state secretaries, ministers, and notably the Prime Minister, have seen significant increases each year.

• As reported by 24.hu, state secretaries’ salaries were increased by around 14% to a gross monthly HUF 2.65 million as of July 1, while most ministers’ salaries rose by the same percentage to HUF 3.53 million. (Salaries of government members are no longer regulated by law but are decided personally by the Prime Minister.) However, department heads in the HUF 5 million salary ranges enjoyed a 27% raise, with Minister of National Economy Márton Nagy and Minister of Energy Csaba Lantos now both earning a gross HUF 6.362 million. Meanwhile, Viktor Orbán’s monthly remuneration package (including his honorarium as a MP) rose to a gross HUF 6.539 million, making his salary the highest among EU heads of government when compared to their respective countries’ average wage.
• This trend has been consistent in previous years as well: in 2023, most ministers’ salaries were increased by 17.5%.
• This followed a 2022 surge in government salaries after the formation of the fifth Orbán cabinet, with ministers typically receiving a 33% raise. For state secretaries, this figure was around 10 per cent.
• Regarding the period between 2018 and 2020, our paper has found that the total wages for government members, state secretaries, deputy state secretaries, government commissioners, and ministerial commissioners had doubled.

Public administration employees ashamed of their salaries

Over the past few years, government officials and civil servants running public administration have suffered continuous real wage declines. For them, there has been only one salary increase – averaging 10 per cent – since 2018, just before the 2022 parliamentary elections. About 29,000 employees work in territorial government administration including government offices, land offices, employment offices, as well as pension and public health authorities. Another 27,000 civil servants work in municipal administration.

Currently, for the vast majority of this group counting nearly 60,000 employees,

salaries are maintained at the level of the guaranteed minimum wage (currently gross HUF 326,000)

– as pointed out by Péterné Boros, president of the Trade Union of Hungarian Civil Servants and Public Employees (MKKSZ).

Although government and public officials are subject to a fixed wage scale that, depending on classification, sets higher than average wages theoretically capped in the range of millions, the union leader believes the main function of this system is to conceal the fact that the majority of employees are barely getting by on a net salary of around HUF 210,000–220,000.

Of course, the lowest salary package – that can be considered average in the sector – naturally increases each year with the rise in the guaranteed minimum wage, but it is already lower than the remuneration of newly qualified teachers, for example.

It is not common for public and government officials to receive additional benefits beyond their base salary. The only exception is the reimbursement for commuting costs, but even in this case, the state is only willing to pay the minimum of HUF 18 per kilometre, whereas workers could receive up to HUF 30 per kilometre tax-free. The union leader also mentioned that the meagre salaries come hand-in-hand with a lack of recognition; employees don’t even receive greeting cards for holidays, let alone presents. Since 2017, the Day of Public and Government Officials is no longer an official holiday, so most employees still have to work that day.

It is not an option for these people with two or three degrees receiving exceptionally low salaries to find work in Austria as kitchen assistants. Many struggle with livelihood issues and can’t help but feel ashamed for having such jobs

– said Péterné Boros.

It also causes serious tension that those in more sought-after fields, such as IT specialists or economists, earn significantly higher wages than those public servants who have worked in these offices for decades. Meanwhile, truly high salaries are enjoyed only by a small number of senior officials.

Consequentially, the sector is plagued by a high degree of employee turnover, and staff shortage has become critical. The MKKSZ has continuously been raising these issues with Vince Szalay-Bobrovniczky, Deputy State Secretary responsible for civil and social relations in the Prime Minister’s Office, as well as with the Minister of the Prime Minister’s Office and the Prime Minister himself. The most recent such instance was in May during a forum event of the public service sector: the MKKSZ proposed a uniform annual wage increase of 25% to put an end to the turnover problem. The union also suggested that the minimum wage directive of the European Parliament and the Council (2022/2041) should be applied in public administration workplaces. The government has yet to respond to their proposals.

A significant obstacle for the organisation is that public sector unions cannot participate in minimum wage negotiations, although this would be crucial as the majority of the sector’s wages are adjusted in accordance with the guaranteed minimum wage.

Difficulty investigating root issues

Péterné Boros believes that belt-tightening is also evident in material expenses across public administration. Although government offices have been renovated with EU funds in recent years, employees regularly encounter a lack of toilet paper in restrooms, and even have to “beg” for the replacement of a single burnt-out light bulb.

She also observes that senior officials, working for the highest wages, are chosen based on political suitability. These high-ranking employees then act as taskmasters and punish those who dare voice their concerns. Employee opinions must not touch on politics, which is interpreted in offices as a ban on criticising the employer. In turn, the very identification of problems runs into obstacles. According to the MKKSZ president, it was telling when the head of the Tiszántúl Water Management Directorate was fired for writing a critical expert opinion on the Debrecen battery plant case. According to reports, office workers often find that their Facebook posts are monitored by the employer, while posts critical of the government may result in warnings or even dismissal.

State-owned companies struggle cutting even more

In a government decree dated August 1, Viktor Orbán ordered 100% state-owned companies to start saving money, primarily on personnel-related expenses. Until the end of the year, such companies must save an amount equal to one-third of 5% of personnel expenses booked in 2023 (one-third is the proportion of the remaining four months to the entire year). Failing to meet this, state corporations must save twice the remaining amount next year.

It is important to emphasise that

public services are not affected by this decree.

Although the largest opposition party has already jumped on the issue of wage reductions at state-owned companies, 27 enterprises have been exempted from the decision, including the largest employers such as the state railways (MÁV) and long-haul bus services (Volánbusz), the national postal service, and Hungary’s main energy supplier (MVM).

Our paper has reached out to several union leaders to find out more about the new regulation, but no one could provide specifics yet. Melinda Mészáros, president of LIGA, a major association of eighty trade unions, pointed out that ministries can make decisions regarding the austerity measures until August 15, so details are not yet known. According to the text of the decree, savings should primarily be on personnel expenses, but this does not exclude cutting on other budget items, such as operating costs. Much will depend on how individual ministries will make their decisions and regarding which companies, as in cases where several corporations fall under a single ministry, the 5 per cent must be interpreted generally, therefore it is not certain that the required target will be uniformly 5 per cent everywhere.

LIGA’s president, however, sees no room for savings even among smaller players. The budget of state-owned companies is stretched thin across the board; every last forint has to be fought for.

Further tightening of expenses is almost impossible in such a situation

­– she stated.

Therefore, it cannot be ruled out that wage levels may decrease, or jobs may be cut at some companies. Meanwhile, cutting material costs could lead to operational problems.

In the end, The Ministry of Public Administration and Territorial Development reacted to our inquiries. They responded that government office workers have received three wage increases in the past five years: one averaging 18% in March 2020, one measuring up to 10% in 2022, while last July saw a wage increase of an average 15 per cent. The gross average salary of employees working in government offices is currently HUF 510,585 – according to the statement.