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Jul 21, 2017

Hungary's average wage increases by 12.9% annually

Mihály Varga, minister for National Economy, said that over the past few months the Hungarian economy had seen its highest wage growth of the last 15 years

Hungary's average gross monthly wage rose by an annual 12.9 percent to 296,100 HUF (968 EUR) in May, according to the Central Statistical Office (KSH).

According to official figures, net wages grew at the same rate as gross wages, climbing 12.9 percent to 196,900 HUF.

Statistics showed that wages have been aided by a higher minimum wage and pay increases in the public sector and at state-owned public service provider companies.

Analysts told MTI that a slower increase in May had been primarily due to seasonal effects, and real wages could grow by an annual 10 percent in 2017. They added that wages could grow faster in jobs requiring skills in demand, as suggested by wage agreement signed in recent months.

Mihály Varga, minister for National Economy, said that over the past few months the Hungarian economy had seen its highest wage growth of the last 15 years.

The minister attributed the increases to Hungary’s economic growth and a six-year agreement signed between the government, unions and employers to increase the minimum wage at the end of 2016.

Hungary is aiming to narrow or even close the wage gap with other countries in the region, the minister added.