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Dec 29, 2017

Hungary’s wages are expected to grow by 8-10 percent in 2018

Piroska Szalai, the head of the Budapest Business Development Foundation, also a consultant for the economy ministry, told Magyar Idők that Hungary’s economy is improving

Hungary’s wages are expected to grow by 8-10 percent in 2018, according to experts.

Piroska Szalai, the head of the Budapest Business Development Foundation, also a consultant for the economy ministry, told Magyar Idők that Hungary’s economy is improving.

“Average wage growth for the whole labor market will certainly be at least 8 percent … and up to 10 percent,” Szalai said.

According to Central Statistical Office (KSH) data, average gross wages rose by around 12 percent in January-October. Next year’s wage growth is likely to be lower than this year’s because of big public sector pay rises, mainly in healthcare and social services.

MTI writes that public sector wages grew by around 16 percent in 2016. In its midterm macroeconomic and budget forecast for 2017-2021, the economy ministry projected gross nominal wages rising by 13.1 percent this year and by 9.4 percent in 2018.

Figures show that wage growth is expected at 7.7 percent in 2019 and 6.7 percent in 2020. Inflation is expected to average 2.4 percent this year and 2.7 percent in 2018 before levelling out at 3 percent in the following three years.