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Real wages up 7 per cent year-on-year

Real wages rose significantly, climbing 6.9 percent in January-February 2016, according to the Hungarian Central Statistical Office (KSH). Minister of State for Labor Market and Vocation Education Péter Cseresnyés said that the latest numbers continue an upward trend that has been growing over the last three years in Hungary.

In the private sector, he added, the number of employees at companies with at least five employees grew by 68 thousand year-on-year in the reporting period.  Such an increase on the primary labor market has been unprecedented since the turn of the millennium.

In the initial two months of the year, the minimum wage and the guaranteed minimum wage rose 6.7 percent and 6.8 percent, which factors have also significantly contributed to overall real wage growth, he pointed out. These were the highest wage increases since 2002.

In the period January-February 2016, gross and net wages – excluding family tax allowances – averaged HUF 248 800 and HUF 165 500, respectively. Including family tax allowances, average net wage was estimated at HUF 172 600 by the KSH. Excluding the effect of public work schemes, gross wages averaged HUF 263 900 in the private sector, HUF 260 600 at budgetary institutions and HUF 238 800 at non-profit organizations in the observed period. Within the national economy -- taking into account the effect of public work schemes -- real wages rose by 6.9 percent, while excluding this factor they were up by 7.5 percent.

Wages in real terms – excluding the effect of public work schemes --  increased by 6.2 percent in the private sector, by 11 percent in the public sector and by 5.5 percent in the non-profit sector, year-on-year, in the period January-February 2016.

Thanks to private and public sector wage hikes, favorable inflation, tax cuts and rising minimum wages, real wages have been steadily higher in Hungary. Concurrently, consumption has also been on the rise, which signals steady improvement of the financial status of Hungarian families.

For detailed data, please visit www.ksh.hu.