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Double-digit earnings growth sustained through 2018

In December 2018, average gross earnings amounted to HUF 360,000, some 10.2% higher than in December 2017. In the whole year January–December 2018, average gross earnings amounted to HUF 329,900, up by 11.3% compared to 2017.

Twelve-month wage growth has been in the double digits since early 2017, after an agreement was reached by employers, unions and the government on big minimum wage hikes paired with payroll tax cuts.

An upsurge in labor demand, 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 earnings growth, noted the Central Statistical Office (KSH).

In December 2018, full-time employees’ average gross nominal earnings at corporations employing at least five persons, budgetary and designated non-profit institutions amounted to HUF 360,000.

Average net earnings were HUF 239,400 excluding family tax benefits, and HUF 247,900 including them. Both gross and net earnings grew by 10.2% compared to December 2017.

Real wages were up 7.3% in the month of December, calculating with December CPI of 2.7%.

In 2018 as a whole

In January–December 2018, full-time employees’ average gross nominal earnings at corporations employing at least five persons, budgetary and designated non-profit institutions, amounted to HUF 329,900. Average gross earnings were the highest in financial and insurance activities (HUF 608,200), and the lowest (HUF 212,000) in accommodation and food service activities.

Average net earnings – excluding family tax benefits – were HUF 219,400 in 2018. 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 at HUF 228,000 in 2018.

Both gross earnings and net earnings without family tax benefits grew to the same extent, by 11.3%, while regular gross earnings increased slightly less, by 11.2% compared to the previous year.

Along with a 2.8% rise in consumer prices in January-December 2018, compared to 2017, real earnings increased by 8.3%.

Monthly average gross wages and salaries according to the SNA concept amounted to HUF 346,700, some 11.4% higher than a year earlier.

Earnings data for January 2019 will be published on March 29.