Hungary's Premier Slashes Political Salaries by More Than Half

Deep Cuts to Top Political Pay in Hungary

According to Главком: Hungarian Prime Minister Peter Magyar has announced a major reduction in salaries for the country's political elite. His own monthly earnings will be set at 3.8 million forints (around 10,500 euros), less than half the 7.8 million forints (22,000 euros) his predecessor Viktor Orban received each month. The cuts will affect not only the prime minister but also ministers, lawmakers, mayors, and top managers of state-owned companies.

This salary reduction is part of a new strategy aimed at improving the state's financial health. The reform is expected to save the budget up to 50 billion forints (approximately 139 million euros). Under the new rules, the maximum monthly compensation for members of parliament will drop to under 5 million forints (14,000 euros). Previously, lawmakers could receive up to 7 million forints (19,500 euros) per month for transportation, housing, and staff.

State Finances and Fresh Initiatives

In his statements, Magyar noted that the country's financial situation turned out worse than anticipated. He did not rule out the possibility of falsifications in the previous government's budget reporting. The new administration discovered bags of shredded documents in former ministry buildings, pointing to serious issues with financial accountability. Magyar also expects economic growth of around 2% this year.

Magyar's prime ministerial salary consists of a 2.3 million forint base pay plus 1.5 million forints in parliamentary allowances. This means he will earn roughly 5.9 times the average Hungarian salary of about 640,000 forints (1,630 euros) per month. By contrast, Orban earned 34 times the national average.

Notably, Magyar has not moved into the official government residence and continues to drive a blue Skoda Superb. He emphasizes 'humanity, moderation, and humility' in his work. The government is also preparing an agreement with the European Commission to unlock 10.4 billion euros in recovery funds.

The reduction in political salaries in Hungary reflects the new government's efforts to stabilize the country's financial situation after a period when budget indicators were under strain. Cutting costs for public officials may signal a push for greater transparency and accountability in managing state finances. This could also be a key step toward improving relations with international financial bodies like the European Commission, particularly in securing recovery funds.

As Hungary's government undertakes significant salary reductions for its political figures, it also reflects a broader trend of accountability among former officials. In a related development, a decision has been made to donate severance payments received by Orbán's ministers to support an orphanage in Ukraine. This move highlights the ongoing efforts to rectify past financial mismanagement while prioritizing humanitarian aid. For more details on this initiative, see the donation of severance pay to a charitable cause.