May 20, 2016

Hungarian wages are up for the 39th consecutive month

Wages have grown by 7.4 percent year-on-year, according to latest figures

Wages paid to Hungarians have grown by 7.4 percent year-on-year, according to the latest report by the Hungarian Central Statistical Office (KSH).

According to figures, this upward wage growth trend has been in place for the 39th consecutive month in Hungary.

In comparison to March 2015, the number of employees in the private sector – at enterprises with at least five employees – was up significantly, by 65,000, in the observed period.

This has mainly been the result of growing labour demand, the reduction of taxes on labor, the Job Protection Action as well as to measures aimed at higher economic activity.

In the initial three months of 2016, gross and net wages (which exclude family tax allowances) averaged 253 800 HUF and 168 800 HUF, respectively. Taking into account family tax allowances, the average net wage is estimated at 176 000 HUF by the KSH.

Excluding public work schemes, in Q1 2016 gross wages averaged 270 400 HUF in the private sector, 260 900 HUF in the public sector and 243 700 HUF in the non-profit sector.

Within the national economy, wages in real terms rose with and without the effect of public work schemes by 7.4 percent and 8 percent, respectively.

Steady growth in the number of jobs and in the amount of wages as well as favorable inflation indicators are expected to further improve the financial status of families, and thus contribute to domestic consumption growth.

The positive economic outlook also signals that real wages and employment figures are set to gain more.