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The main reason for the change is the continuous growth in domestic real wages, together with the Hungarian government's substantial demographic program that offers young couples sizeable financial benefits for having children.
The Finance Minister said that since the current government came into power in 2010, net wages have grown by an accumulated 85 percent, and the gross wage rise between 2010-2018 was the fastest among the Visegrád Four group states.
Hungarians are more optimistic about economic matters than before, the number of people whose financial situation significantly improved increased by two and a half times, and more people were able to finance substantial expenditures without turning to loans
“In addition to the work of the Hungarian people, both the good performance of the Hungarian economy and the tax cuts are enabling these wage increases, and their effects are being reinforced by our family support schemes,” Csaba Dömötör said
Bence Rétvári said that in 2010 there was a replacement rate of 1.2 graduates per doctor dropping out of the labor market, ever since the government introduced a new scheme to increase wages, the rate has averaged 3.6
“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
The number of doctors applying to leave Hungary to work abroad dropped by 19 percent between 2015 and 2016 and by 50 percent to the present compared with 2010-2011. The same measure for nurses showed a 15 percent annual drop last year
The prime minister said similar attempts to increase wages have been made several times in the past 26 years, but no comprehensive agreement had ever been reached. The Hungarian government has now succeeded in achieving that
Pay rises for state workers are made possible by the fact that the Hungarian economy now stands on solid foundations, is on a course for growth, inflation is low, the deficit of the budget is under control, and the sovereign debt is on the decrease