Wages in Hungary grow fast in 2017
In October 2017, average gross earnings amounted to HUF 295,800, 12.8% higher than a year earlier, the Central Statistical Office (KSH) reported on Wednesday. Eurostat, the EUʼs statistics office, measured a similar growth in the third quarter, which puts Hungary among the European states with the highest growth in hourly labor costs.
Chart source: Eurostat
In January–October 2017, average gross earnings amounted to HUF 291,400. In the first ten months of the year, both gross and net earnings grew to the same extent, by 12.8% compared to the same period of the previous year, according to figures released by the KSH.
Average gross monthly earnings in the year to October were the highest in financial and insurance activities (HUF 556,700) and the lowest in human health and social work activities (HUF 181,400).
Rises of 15% in the minimum wage and 25% in the guaranteed minimum wage, as well as salary adjustments affecting specific areas of the public sector and the employees of state-owned public service companies, had an impact on earnings growth, the KSH noted.
In October 2017, full-time employees’ average gross nominal monthly earnings according to the national concept amounted to HUF 295,800 at corporations employing at least five persons, budgetary and designated non-profit institutions. Average net earnings by the national concept were HUF 196,700 excluding family tax benefits, and HUF 204,600 including them. Both gross earnings and net earnings grew by 12.8% compared to the same period of the previous year.
The figures are in line with data published recently by Eurostat, the statistical office of the EU, which show that in the third quarter of 2017, the highest annual increases in hourly labor costs for the whole economy were registered in Romania (+16.5%), Hungary (+12.6%) and Bulgaria (+10.7%).
Eurostat data show that hourly labor costs rose by 2.1% on average among all EU states in Q3 2017, compared with the same quarter of the previous year.
Average net monthly earnings – excluding family tax benefits – were HUF 193,800 by the national concept in January–October. In 2017, family tax benefits rose in the case of families with two children, which had an effect on the amount and change of net earnings. Taking into account family tax benefits, average net monthly earnings are estimated to be HUF 201,600 in the period.
Monthly average gross wages and salaries according to the SNA concept amounted to HUF 305,400, some 12.5% higher than a year earlier. Within this indicator, the share of other wages and salaries was 4.6% on average, according to the KSH.
Along with the 2.4% rise in consumer prices compared to the same period of the previous year, real earnings increased by 10.2% in the first ten months, noted the statistics office.
Earnings data for the period of January–November 2017 will be published by the KSH on January 19, 2018.
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