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Aug 19, 2016

Hungarian wages are up and those in employment has increased

Low inflation, tax reductions, the Job Protection Action Plan as well as public and private sector wage hikes have all contributed to the rise of wages

Hungarian wages are on the rise for the fourth consecutive year and the number of those in employment has increased by 65,000, it has been revealed today.

In the first half of 2016, wages in real terms rose by 7.5 percent, according to the latest flash report of the Hungarian Central Statistical Office (KSH).

An upward wage trend has been in place for three and a half years. Since June 2015, the number of people in employment has increased by some 65,000 at enterprises with at least five employees.

In the first half of 2016, gross and net wages averaged 258 000 and 171 600 HUF (excluding family tax allowances). Including family tax allowances, the KSH estimates that the average net wage was 178 800 HUF.

Excluding the effect of public worker wages, gross wages averaged 275 300 HUF at enterprises, 268 000 HUF at budgetary institutions and 247 400 HUF at non-profit organizations.

Within the national economy, wages in real terms were up, with and without public worker wages, by 7.5 percent and 8.2 percent, respectively. The increase of wages in real terms (excluding public work schemes) has grown by 6.8 percent in the private sector, 12 percent in the public sector and 8 percent in the non-profit sector.

Low inflation, tax reductions, the Job Protection Action Plan as well as public and private sector wage hikes have all contributed to the rise of wages.