Gross wages up 10.7% in July

Telco

The average gross monthly wage for full-time workers in Hungary rose 10.7% year-on-year to HUF 362,595 in July, the Central Statistical Office (KSH) said on Monday. Net monthly wages grew at the same pace, reaching HUF 241,126.

Calculating with 12-month CPI of 3.3% in July, real wages were up 7.2% year-on-year.

Excluding fostered workers, the average gross wage in the business sector, which includes state-owned companies, rose 11.8% to HUF 375,801. The average wage in the public sector increased 6.0% to HUF 368,152.

In January-July, average gross wages rose 10.6% year-on-year to HUF 359,911, and average net earnings by the same degree to HUF 239,300. Excluding fostered workers, business sector gross wages rose 11.3%, while public sector wages rose 5.2% over the seven-month period.

The data sources show that in January-July the average gross monthly wage was highest in the finance and insurance sector, at HUF 668,673, and the lowest in social and healthcare services, at HUF 238,444.

Men employed full-time earned a gross HUF 393,900 on average during the seven-month period, while women earned HUF 326,700. The rates rose 11.3% and 9.6%, respectively, on an annual basis.

Average gross earnings of full-time employees under the age of 25 reached HUF 276,100, were HUF 375,000 for those aged 25–54, and HUF 352,600 for those aged over 54 in January–July. The year-on-year growth in earnings in the above age groups was 16.9%, 10.9% and 10.2%, respectively.

Analyst András Horváth of Takarékbank told state news agency MTI that he expected wage growth to remain intensive in the coming period due to the tight labor market and record-low level of unemployment.

Péter Virovácz of ING Bank agreed that the average wage growth of 10.6% measured in the first seven months of 2019 could continue, although downside risks are also increasing with the deterioration of the external economic environment.

Earnings data for January–August will be published on October 30.

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