The 2025 pay war: a huge gap between employers and workers
In 2025, 88 percent of employers expect a wage increase of less than 10 percent, while 86 percent of workers want an increase of at least 11 percent. In fact, around half of workers surveyed expect wage increases of over 20 percent, according to Jobtain's survey. But the economic environment is not conducive to higher wage increases. "One of the key questions for the coming year is whether the trend of companies' initial lower wage increase plans eventually matching workers' higher wage demands will be repeated," says Magdolna Mihályi, CEO of Jobtain HR Services.
Countering the impact of inflation is a huge challenge for wage policy
Jobtain 2025 conducted a survey of its partners in March 2025 to find out, among other things, what most determines their pay policy. Their research found that one third of firms follow a performance-based pay strategy and do not find it challenging to develop objective metrics.
45 percent of companies plan only minor changes to their pay structure, while 36 percent would not change it at all.
The latter proportion is interesting because otherwise complying with the EU's pay transparency directives places quite a heavy burden on companies, of which equal pay for equal work is just one of many. It is true that in this respect, 75 percent of those surveyed said they already comply with the principle of equal pay. However, the need to comply with a number of other pay parity requirements is certain to require many firms to adapt their pay policies. Retaining talent and increasing employee satisfaction is a huge challenge for a third of firms
."We also asked employees about wages. More than fifty percent of them are currently earning below HUF 300,000, a third earn between HUF 3,500,000 and 500,000, and only 6 percent earn between HUF 700,000 and 1 million. More than half of workers received no pay rise last year, and a fifth received less than 5 percent. However, three quarters of workers said their cost of living had increased. In terms of wage demand, even manual workers reported a salary above 500,000 forints, while in the intellectual sector it was close to 700,000 forints. In the category of other benefits, cash and in-kind benefits are both important for nearly half of the skilled workers,"
The survey found that the most important reason for workers' demand for wage increases is the recent rise in prices. If prices were to fall, workers would not expect such a big increase in wages. Despite this, the survey found that firms are least likely to use inflation as a basis for wage increases, preferring to look at competitors. However, 32 percent said inflation is the biggest challenge in setting wage policy.
Wage policy and wage parity in 2025
A company's wage policy is influenced by a number of economic, social and labour market factors. Retention and motivation of the workforce, avoiding the negative effects of inflation, attracting talent, recruitment, ensuring social equality, company performance are all important factors for the economy as a whole. The current skills shortages in the labour market are forcing companies to offer truly competitive wages. The supply and demand for labour in the market has a strong influence on wage policy. However, often it is not only competitiveness that companies take into account when setting their wage policies, but also the workplace environment, sustainable operations and contribution to community projects. Employees' needs and expectations can also influence pay policies.
"Today, wage transparency is becoming increasingly important. Companies are increasingly open about their pay structures, salary scales and are trying to ensure that employees are aware of how wages are evolving in different positions. As a result of globalisation, companies are increasingly employing a global workforce and are adjusting their pay policies accordingly. They are taking into account wage differences between different geographical locations and offering a competitive compensation package in the local market," the expert points out.
The role of wage benchmarking is gaining ground
Wage benchmarking is essential because it allows companies to understand where their pay is positioned at industry and market level, how they can shape their pay policies to be competitive, motivating and sustainable. Through benchmarking, a company compares its pay levels with those of its competitors, giving it the opportunity to understand its competitive level. The process can also address internal inequalities by comparing the pay of people in the same job. The result is a win-win situation: pay differentials are reduced and an equal and fair pay policy can be developed that complies with regulations. Furthermore, wage-related expenditure can be monitored and optimised. "A good pay policy is not just a financial issue. It contributes to building a corporate culture, increasing employee satisfaction and engagement. It helps to adapt dynamically to a changing environment and contributes to the competitiveness of the company", concludes Magdolna Mihályi.
Not all employers are willing to maintain the real value of salaries
- show results of GKI research.
image: freepik