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Tax credit lifts family net wages 5.6% in Q1

Hungarians eligible for family tax credit introduced at the start of 2011 saw their net wages rise 5.6% in the first quarter from the same period a year earlier, according to newly released data compiled by the Central Statistics Office (KSH).

Calculating with 4.2% inflation during the period, these Hungarians' real wages climbed 1.4%.

Excluding the effect of the family tax credit but still including the effect of a 16% flat-rate personal income tax, also introduced at the start of 2011, net wages rose 3.5% on average, the KSH said.

Net wages of families with a single child rose 5% during the period, they were up 9.8% for families with two children and rose 17% for families with three or more children. Net wages of childless families increased 2.9%.