Gross monthly wages top HUF 310,000 in January
In January 2018, both average gross wages and average net wages were 13.8% higher than a year earlier, according to a first release of monthly data from the Central Statistical Office (KSH). Real wages increased by 11.5% in January.
Rises of 8% in the minimum wage and 12% in the guaranteed minimum wage, as well as salary adjustments affecting specific areas of the public sector and the employees of some state-owned public service companies, had an impact on wage growth, the KSH said.
In January 2018, full-time employees’ average gross monthly nominal earnings - as defined by the KSH - at corporations employing at least five persons, budgetary and designated non-profit institutions amounted to HUF 310,800, and to HUF 323,600 excluding those employed on government work schemes.
Average gross monthly earnings were the highest in financial and insurance activities (HUF 570,000), and the lowest (HUF 203,100) in accommodation and food service activities. Workers on government work schemes earned on average a gross HUF 82,300 per month (HUF 54,700 net).
Regular gross earnings (gross earnings without premiums and one-month bonuses) amounted to HUF 296,200. Average net earnings – excluding family tax benefits – were HUF 206,700, as defined by the KSH. In 2018, family tax benefits rose further in the case of families with two children. Taking into account family tax benefits, average net earnings are estimated to be HUF 215,200.
Along with the 2.1% rise in consumer prices compared to the same month of the previous year, real earnings increased by 11.5% in January, according to KSH calculations.
Monthly average gross wages and salaries according to the international SNA concept amounted to HUF 323,100, some 14.2% higher than a year earlier. Within this indicator, the share of other wages and salaries was 3.8% on average.
Speaking to state news wire MTI, ING Bank chief analyst Péter Virovácz said wage growth exceeded market expectations of an increase of 12%. He noted the impact of hikes in minimum wages for skilled and unskilled workers on the headline figure.
TakarékBank analyst András Horváth said the shortage of qualified labor, minimum wage increases and pay rises in the public sector could lift full-year wage growth over 9%.
Wage data for January–February 2018 will be published by the KSH on April 20.
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