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Hungary gross wage growth slows down to 1.1%

Twelve-month gross wage growth in Hungary slowed down to 1.1% yr/yr in April from 9.4% yr/yr rise in March, the Central Statistics Office (KSH) said on Friday. Wages in January and in March were boosted by the payment of a 2010 wage supplement to public sector workers in the month.

Gross wages rose 5.2% yr/yr in the business sector and fell 8.8% in the public sector. Public sector data includes workers employed in public work schemes.

Excluding bonuses and other one-off items, regular gross wages rose more than gross wages did: by 2% in April yr/yr, actually slowing from a 2.9% rise in March.

Regular gross wages rose 3.9% yr/yr in the business sector, less than overall gross wages did, and down from a 5.3% rise twelve-month increase in March.

Excluding the bonuses and other one-off effects, regular gross wages in the public sector fell 1.9% yr/yr in April after a 2.2% fall in March. Public sector regular gross wages have been below earlier levels each month since June 2009. The drop mainly reflects the low wages of those employed in public work schemes.

January-April gross wages rose 4.5% from a year earlier, of which regular gross wages rose 2.8%.

January-April gross wages in the business sector were up 5.4%, of which regular gross wages rose 4.8%, while public sector gross wages were up 2.6%, of which regular gross wages fell 1.6%. Excluding workers employed in public work schemes, regular gross wages in the public sector were 1.3% higher than in the first four months of 2009.

Net wages increased 7.8% in the twelve months to April and January-April net wages were up 10.9% yr/yr. Net wages rose steeper than gross wages because of changes in personal income taxation.

Real wages rose 2% from a year earlier in April, calculating with an April CPI of 5.7%, and rose 4.7% yr/yr in January-April, adjusted for average inflation of 5.9% in the period. (MTI-ECONEWS)