The increase in average earnings slowed to below 10% in February, with real earnings only 3.5% higher than a year earlier. The average net earnings were HUF 455,000, and the median net earnings were HUF 371,000.
The KSH data shows that full-time employees’ average gross earnings were HUF 661,400, 9.3% higher than a year earlier. Regular average gross earnings (without premiums and one-month bonuses) were estimated at HUF 632,500, 9.4% higher than in the same period of the previous year.
The regular average gross earnings amounted to HUF 630,600 in the business sector, HUF 626,400 in the budgetary sector and HUF 666,800 in the non-profit sector, rising by 9.3%, 9.3% and 10.7%, respectively, over a year.
Average net earnings reached HUF 439,800, excluding tax benefits and HUF 455,000, including them, being 9.3% and 9.1% higher, respectively, than in February 2024. Real earnings were up by 3.5%, along with a 5.6% increase in consumer prices compared to the same period of the previous year.
Median gross earnings were HUF 533,600, 8.5% above the previous year. Median net earnings, including tax benefits, reached HUF 370,700, surpassing the value for the same period of the previous year by 8.8%.
According to an analysis by business portal HVG, there were huge differences between the average salaries of Hungarian counties in February. Budapest leads the way with its gross average of HUF 800,466, followed by Komárom-Esztergom (HUF 670,897), Győr-Moson-Sopron (HUF 668,574) and Fejér (HUF 640,885).
At the other end of the scale is Szabolcs-Szatmár-Bereg county, where the average salary does not even reach HUF 494,000, a difference of more than HUF 300,000, or roughly 62% of what they earn in the capital. Similarly, averages of around HUF 500,000-520,000 forints are found in Békés and Nógrád counties, clearly showing the east-west and center-periphery contrasts.
Growth rates vary across the various regions. While the average growth rate in the country was 9.3 in 2024, Szabolcs-Szatmár-Bereg County produced the highest dynamics: 10.5%. High growth was also achieved in Hajdú-Bihar and Pest (9.9%), as well as Baranya and Somogy (9.8%).
In contrast, the slowest growth was experienced in some traditionally higher-earning western counties (Vas: 7.8%, Győr-Moson-Sopron: 8%), as well as in Nógrád County (7.8%), which also started from a lower base. It seems, therefore, that wage convergence has begun within the country, albeit slowly, although bridging the existing, significant differences may take a long time.
It is also interesting to see how gross average wages compare in the neighboring countries. With the Hungarian gross average being HUF 661,380 in February, Slovenia (HUF 1,003,612) is far ahead, but Poland (HUF 819,597, private sector only), the Czech Republic (HUF 800,971), Croatia (HUF 784,072) and Romania (HUF 730,790) are also noticeably ahead of us in gross average earnings. Slovakia (HUF 669,210) has the closest level to Hungary, while Serbia (HUF 515,280) and Bulgaria (HUF 513,994) are clearly behind in this nominal comparison.
Another aspect of the labor market, namely the unemployment rate and the average number of employed persons, shows a relatively stable picture. According to the KSH data, in March 2025, the average number of employed persons aged 15–74 was 4.7 million, which is more than 18,000 people higher than the February level but 9,500 people lower than a year earlier.
In March 2025, the monthly unemployment rate reported by KSH decreased by 0.2 of a percentage point to 4.3%, which fell short of the market consensus of expectations (4.5%).
In March, the number of unemployed people decreased by 8,700 compared to the previous month, while it decreased by 5,200 compared to the data a year earlier. The number of economically active increased by 10,000 people in one month, but it was nearly 15,000 people less than was seen at this time last year. The larger population decrease seen in February was followed by a smaller decrease of 5,500 people in March for the 15-74 age group.
According to MBH Bank analyst Márta Balog-Béki, the data so far indicate a stable labor market. The March employment data returned to the level of the end of last summer, which was followed by a decline in employment until the end of the year, and then the number of employed people stagnated in the first two months of 2025.
The employment rate rose to an unprecedented level of 65.5%, but it is important to note that the gradual decline in the population also plays a role in this. The number of economically active people also increased, and the good news is that this can be linked to the increase in the number of employed people in March. The number of unemployed people increased at the beginning of the year due to seasonal effects, but in March, it returned to the December level.
In the coming months, uncertainty about tariffs may also negatively affect companies’ investment decisions, which is difficult to quantify at the moment, but this could temporarily reverse the current favorable trends.
“For now, we maintain that the economy may start to recover towards the end of the year. Employment growth may be slow, as companies have not laid off workers en masse despite the weak economic situation, so recruitment is not expected to start very quickly when the recovery begins,” Balog-Béki says.
STOP PRESS: As expected, the National Bank of Hungary decided to leave the base rate unchanged at 6.5% at a policy meeting on April 29. The council also kept the O/N deposit rate at 5.5% and the O/N collateralized loan rate at 7.5%.
This article was first published in the Budapest Business Journal print issue of May 5, 2025.
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