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Oct 19, 2016

Hungarian wages are up by 7.5 percent from last year

In the first eight months of 2016, wages in real terms increased by 7.5 percent year-on-year

Wages in real terms have increased by 7.5 percent year-on-year, according to the flash report of the Hungarian Central Statistical Office (KSH),

The results show that an upward wage trend has been in place for the 44th consecutive month. Within the private sector, the number of jobs soared by 65,000 since August 2015.

In January-August 2016, gross and net wages averaged 257 900 and 171 500 HUF (excluding family tax allowance), respectively.  

Taking into account family tax allowances, the net wage was estimated at 178 700 HUF. Excluding the effect of public work schemes, in the observed period gross wages averaged 274 100 HUF in the private sector, 271 100 HUF in the public sector and 248 200 HUF in the non-profit sector.

This corresponds to real wage increases – with and without the effect of public work wages -- of 7.5 percent and 8 percent, respectively.

Accordingly, excluding the public work scheme, wages rose by 6.8 percent at enterprises, 11.4 percent at budgetary institutions and 7.4 percent at non-profit organizations.

These increases were the result of private and public sector wage hikes, low inflation, tax cuts and rising minimum wages.

Favorable economic processes are signalling further real wage and job growth in Hungary.