Equality in the EU? 1500 euro average salary in EU compared to 659 euro in Hungary

The average gross wage in Hungary rose by 13.2 percent annually to 949 euros, (292,400 forints) in August, the Central Statistical Office (KSH) said on Thursday.

Net wages grew at the same pace as gross wages, also climbing 13.2 percent to 659 euros (194,500 forints).

As the Reinins Fischer said, the average median salary has increased for about 2.39% in European Union in 2016, resulting in average EUR 1508 monthly up from EUR 1469  in 2015

KSH noted that wages have been boosted by a higher minimum wage as well as pay increases in certain areas of the public sector and at state-owned utility companies.

Excluding the 139,600 Hungarians in fostered work programmes in August, the average gross wage rose by 11.9 percent to 305,565 forints, while net wages also increased by 11.9 percent to 203,200 forints.

Full-time fostered workers earned gross 81,513 forints on average during August, 3.7 percent more than in the same period a year earlier.

The number of fostered workers was slightly down from the 164,200 registered in July. Their number fell by an annual 22.6 percent in August.

As we wrote, a recent study researched the reasons why people leave their country and start a new life abroad.  Though only the unemployment rate in the European Union was merely 8.2% at the end of 2016, companies still lack workers with proper skills, so western countries often try to tempt employees from the East.  Cpl checked the employees of the V4 countries (the Czech Republic, Poland, Slovakia and Hungary) from the aspect of mobility.

Analysts interviewed by MTI said they expected the dynamic wage growth to continue in the coming months.

Péter Virovácz of ING predicted an 13 percent average wage growth for 2017.

András Horváth of Takarékbank also forecast 13 percent annual average wage growth, adding that real wages could grow at about 10 percent this year.

As we published economist Péter Róna’s opinion, if wage inequalities remain and stabilize at their current level, the European Union will simply lose its purpose, he said.

“If it were for the opposition, wages would not grow,” ruling Fidesz commented on the KSH figures.

Fidesz spokesman Imre Puskás said that under the previous, Socialist, government workers had been paid “humiliating” wages and both employers and employees had been “burdened to death” with taxes. Since 2010, however, net wages have grown by an average 50 percent through pay hikes and tax cuts, he said.

As we wrote before, more and more companies struggle with the lack of labor force. The most recent data shows that the number of vacant jobs hit a historical height.

Photo: MTI

Source: MTI