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Upward real wage trend in place for four years in Hungary

Staff Writer |
Repeated wage increases have also contributed to the outstanding, 7.5 percent, increase of wages in real terms in the initial eleven months of 2016 in Hungary.

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Thus, real wages have been on the rise for 47 consecutive months. Since November 2015, the number of private sector jobs has increased impressively, by 55 thousand, at enterprises with at least five employees.

In the period January-November 2016, gross and net wages averaged HUF 260 800 and HUF 173 500 (excluding family tax allowances), respectively.

Including family tax allowances, the average net wage is estimated at HUF 180 600.

Excluding the effect of public work wages, gross wages averaged, in January-November 2016, HUF 276 000 in the private sector, HUF 277 700 in the public sector and HUF 250 100 in the non-profit sector.

Accordingly, wages rose by 7.5 percent and 7.9 percent, including and excluding public work wages, respectively.

Real wage growth, unadjusted for public work salaries, was outstanding in all three sectors: 6.8 percent in the private sector, 11 percent in the public sector and 7.3 percent in the non-profit sector.

Wage hikes in the private and public sectors prove that the Hungarian economy has been growing stronger.

Thanks to a higher minimum wage and guaranteed minimum wage introduced this January as well as payroll tax reductions and private sector wage hikes, wages are expected to continue to increase in 2017.

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