Wage growth reaches 13.5% y-o-y in December

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Average gross nominal wages for full-time employees in Hungary rose 13.5% year-on-year to HUF 327,713 in December, the Central Statistical Office (KSH) said on Tuesday in a first release of earnings data. For the full year of 2017, the average gross wage rose 12.9% to HUF 297,017.

Rises of 15% in the minimum wage for unskilled workers and 25% in the minimum wage for skilled workers from the start of the year, as well as salary adjustments affecting specific areas of the public sector and the employees of state-owned public service companies, had an impact on earnings growth in 2017 as a whole, noted the KSH.

In December 2017, full-time employees’ average gross nominal earnings according to the national concept amounted to HUF 327,713 at corporations employing at least five persons, budgetary and designated non-profit institutions. Average net earnings by the national concept were HUF 217,929 excluding family tax benefits, and HUF 225,800 including such benefits.

Both gross and net earnings grew by 13.5% compared to the same month of the previous year.

Calculating with annualized inflation of 2.1% in December, real wages rose 11.2%, state news wire MTI noted.

In the full year January–December 2017, full-time employees’ average gross nominal monthly earnings according to the national concept amounted to HUF 297,017 at corporations employing at least five persons, budgetary and designated non-profit institutions, while net wages averaged HUF 197,516 over the year.

In 2017, family tax benefits rose in the case of families with two children. Taking into account family tax benefits, average net monthly earnings were estimated to be HUF 205,400.

Both gross and net earnings grew to the same extent in 2017, by 12.9% compared to the previous year.

Average gross earnings in 2017 were the highest in financial and insurance activities (HUF 561,600), and the lowest (HUF 185,000) in the healthcare and social sectors, which employ the majority of people on government work schemes.

Monthly average gross wages and salaries according to the SNA concept amounted to HUF 312,100 in 2017, some 12.6% higher than a year earlier.

Along with the 2.4% rise in consumer prices compared to the previous year, real earnings increased by 10.3% in 2017.

Employee earnings figures for January 2018 will be published by the KSH on March 20.

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