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Hungary's average gross wage reaches nearly 300,000 HUF a month

“Growth for the first half of the year is in line with the government’s intentions, in view of the fact that we are convinced that the long-term growth of the Hungarian economy cannot be founded on cheap labor," Hungary's economy minister said

Hungary's average gross wage rose 14.4 percent annually in June to 297,300 HUF, according to the Central Statistical Office (KSH).

According to official figures, average gross earnings amounted to 290,300 HUF in January–June 2017 period.

During this period, both gross and net earnings grew by 12.5 percent compared to the same period in 2016.

An increase of 15 percent in the minimum wage, and 25 percent in the guaranteed minimum wage as well as salary adjustments affecting specific areas of the public sector and the employees of state owned public service companies had an impact on earnings growth.

“Growth for the first half of the year is in line with the government’s intentions, in view of the fact that we are convinced that the long-term growth of the Hungarian economy cannot be founded on cheap labor," Mihály Varga, minister for National Economy, said.

“Accordingly, we are pleased that both net and gross earnings in Hungary increased once again to an outstanding degree, by 14.4 percent in June, resulting in a total wage increase of 12.5 percent or the first six months of the year," he added.

“Thanks also to the moderate inflation environment, the real value of earnings increased by 10 percent during the first half of the year, which is resulting in a major improvement in the finances of Hungarian families," the minister said.

Statistics have shown that real wages have been increasing continuously in Hungary for four and a half years, which coupled with increased domestic consumption is also tangibly boosting the growth of the Hungarian economy.

"Thanks to the significant increase in the minimum wage and the guaranteed minimum wage, and parallel with this the six-year wage agreement concluded last year including a tangible decrease in employer contributions, the average gross wage in the private sector exceeded 304,000 HUF in the first six months of this year," the minister said.