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Jun 22, 2016

Hungarians see wage increase of 7.8 percent

Hungary’s net earnings were up by 7.8 percent in the period of January-April, the biggest rise in recent history

Hungarians have seen their real wages increase by near record levels, it has been reported by the Budapest Business Journal today.

Hungary’s net earnings were up by 7.8 percent in the period of January-April, the biggest rise in recent history, according to reports on the Hungarian Central Statistical Office (KSH). Gross earnings were up 6.1 percent, while real earnings were up 7.5 percent.

The growth was mainly due to the one percentage point reduction in the personal income tax, KSH said in their report.

KSH data also shows that consumer prices were up by 0.3 of a percentage point in the period. Wages and salaries according to the SNA concept rose by 6.1 percent, KSH added.

In the period of January-April, average gross nominal earnings of full-time employees, according to the national concept, came to 256,500 HUF at corporations employing at least five people, budgetary and designated non-profit institutions, KSH said.

Average gross earnings were the highest in financial and insurance activities, at 542,400 HUF, and the lowest in human health and social work activities, at 150,100 HUF, KSH said.

Average net earnings – excluding family tax benefits – came to 170,600 HUF by national concept, KSH reported.

Taking into account family tax benefits, average net earnings are estimated to be 177,700 HUF, KSH said.

KSH noted that the rules of family tax benefits this year changed considerably – mainly in the case of families with two children, which had an effect on the amount and change of net earnings.

Monthly average gross wages and salaries according to the SNA concept amounted to 269,400 HUF. Within this indicator, the share of other wages and salaries was 4.8 percent on average, KSH added.