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Hungarian gross wages rise slows to 0.3% yr/yr in July

Gross wages in Hungary rose 0.3% in the twelve months to July 2010 after a 0.5% rise in June, the Central Statistical Office (KSH) said.

The increase in regular gross business sector wages - watched closely by the central bank when shaping its interest rate policy - picked up moderately from June, but mainly because of the base effect, and the rise was still among the lowest in many years.

Twelve-month gross wages rose 3.0% in the business sector but fell 5.8% in the public sector. Excluding wages paid people employed in public work schemes, public sector gross wages fell just 4.6% in July.

Gross wages climbed 2.6% in January-July from the same period a year earlier as business sector wages rose 4.2% and public sector wages fell 0.9%.

Net wages rose 4.5% in July after rising 7.5% in June. January-July net wages rose 8.8%.

Net wages rose at a faster pace than gross wages in the first half of 2010 because of changes to the personal income tax. The rise in net wages was expected to slow from July as tax changes enter the base period.

Regular gross wages, which exclude bonuses and other one-off factors, rose 1.8% in July from the same month a year earlier, slowing from 2.2% in June, but still outpacing the increase in gross wages.

Regular gross wages in the business sector rose 2.9% in the twelve months to July, slightly less than overall gross wages did. The twelve-month increase exceeded the 2.6% rise in June, the lowest increase since 2006, but the pick-up mainly reflects the base effect.

Regular gross wages fell 0.5% in the public sector in July, following a 1.4% increase in June. The figure includes the wages of people employed in public work schemes.

Gross regular wages in January-July rose 2.4% from the same period a year earlier as regular wages rose 4.0% in the business sector - slightly under the headline figure - and fell 1.0% in the public sector. Excluding public work schemes, regular gross wages in the public sector rose 1.9% in January-July from the same period a year earlier.

Real wages rose 0.5% in the twelve months to July, calculating with CPI of 4%. Real wages rose 3.2% in January-July, calculating with average CPI of 5.2%. (MTI – Econews)