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German chamber companies expect wage growth to continue

International companies based in Hungary expect wages in Hungary to grow on average by 6.1% in 2018 after a 6% increase this year, shows a study conducted jointly by the members of the German-Hungarian Chamber of Industry and Commerce (DUIHK) and Kienbaum Consultants International in the fall.

In the same poll one year earlier, respondents had expected 2017 wages to rise by 4%, András Sághy, country manager at Kienbaum Consultants International, said when introducing the findings of the study in Budapest yesterday, national news agency MTI reported.

Wages of skilled workers rose on average by 7.4%, department heads and employees earned 6% more, while senior managersʼ wages rose by 5.8% in 2017, the survey revealed, based on wage data of 16,000 jobs in 76 categories. The majority of the participating companies were DUIHK members.

Wages will continue to be driven up by competition for skilled labor, Sághy said. Wages vary widely among regions, with wages in and around Budapest exceeding the national average by more than 20%, he added.

In the fall 2017 survey, 75% of respondents were not satisfied with the number of skilled workers at their company, although 56% reported growing investments and 61% a rise in the number of employees, DUIHK Communication Officer Dirk Wölfer added.

The Central Statistical Office (KSH) last Friday published figures on income growth in Hungary, which showed gradually rising wages but widening income gaps.