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Gross wage growth reaches 11.2% in June

In January–June 2018, average gross monthly earnings amounted to HUF 324,400 and average net earnings to HUF 215,700, both growing to the same extent, by 11.9% compared to the corresponding period of the previous year, the Central Statistical Office (KSH) reported. 

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 employees of some state-owned public service companies, had an impact on earnings growth, the KSH noted.

In June 2018, full-time employees’ average gross nominal earnings – as defined by the KSH – at corporations employing at least five persons, budgetary and designated non-profit institutions amounted to HUF 329,600, up 11.2% year-on-year, and to HUF 341,700 excluding workers on fostered work schemes.

Average net monthly earnings were HUF 219,200 excluding family tax benefits, and HUF 227,700 including them.

Both gross earnings and net earnings grew by 11.2% compared to the same month of the previous year.

Real wage growth in June came to 7.9%, calculating with a June CPI figure of 3.1%.

In January–June 2018

In the first six months of 2018, full-time employees’ average gross nominal earnings – as defined by the KSH – at corporations employing at least five persons, budgetary and designated non-profit institutions amounted to HUF 324,400, and to HUF 336,900 excluding fostered workers.

Average gross monthly earnings were the highest in financial and insurance activities (HUF 618,200) and the lowest (HUF 208,200) in accommodation and food service activities.

Regular gross earnings (gross earnings without premiums and one-month bonuses) amounted to HUF 301,800.

Average net earnings – excluding family tax benefits – were HUF 215,700. 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 224,300.

Along with the 2.3% rise in consumer prices compared to January-June of the previous year, real earnings increased by 9.4%.

Earnings data for the period January–July 2018 will be published by the KSH on September 20.