Gross median wage up by double digits in Hungary

The average gross wage in Hungary climbed an annual 17.5 percent to 511,400 forints (EUR 1,338) in March, data released by the Central Statistical Office (KSH) on Tuesday show.

The data for full-timers at businesses with at least five people on payroll show the average net wage rose at the same clip to 890 euros (340,100 forints).

The gross median wage increased by 15.0 percent to 1032 euros (394,500 forints).

Hungary’s statutory minimum wage was raised by over 19 percent from the start of the year, while the salaries of many people employed in the public sector were bumped up, putting wage growth in the double digits from January.

Real wage growth was 8.3 percent, calculating with March CPI of 8.5 percent.

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Full riport – KSH

March 2022

Full-time employees’ average gross earnings (as defined by the Hungarian Central Statistical Office) – at corporations employing at least 5 persons, at budgetary institutions and significant non-profit organisations in respect of employment, – amounted to HUF 511,400, excluding fostered workers were HUF 522,300.

Average net earnings were HUF 340,100 excluding tax benefits and HUF 352,200 including them.

Both average gross earnings and average net earnings excluding tax benefits grew by 17.5%. The growth of average net earnings including tax benefits was 18,1%, compared to the same period of the previous year.

Average gross regular earnings (gross earnings without premiums and one-month bonuses) are estimated at HUF 459,700, being 15.5% higher than a year before.

Gross median earnings reached HUF 394,500 surpassing by 15.0% the previous year’s value. Net median earnings including tax benefits were HUF 273,700, 16.5% higher than in March of the previous year.

January–March 2022

Full-time employees’ average gross earnings (as defined by the Hungarian Central Statistical Office) – at enterprises employing at least 5 persons, at budgetary institutions and at non-profit organisations that are significant in terms of employment – amounted to HUF 508,300, excluding fostered workers to HUF 519,600.

Average net earnings reached HUF 338 000 excluding tax benefits and HUF 349,800 including them.

Both average gross earnings and average net earnings without tax benefits went up by 21.0%, average net earnings including tax benefits grew by 21.6% compared to the corresponding period of the previous year. The payment of the “service premium” (the so-called “firearms money”) for the army and the law enforcement personnel, corresponding to six-month salary, and the planned wage raises in certain government branches, as well as the significant increase in the minimum wage and the minimum wage for skilled workers explain, in the first place, the outstanding growth.

The highest average gross earnings were recorded in information and communication (HUF 810,000) and the lowest ones for accommodation and food service activities (HUF 308,000).

Average gross earnings amounted to HUF 561,600 for full-time male employees and to HUF 454,200 for full-time female employees, representing increases of 22,7% for males and 18,3% for females over a year.

Regular average gross earnings (without premiums and one-month bonuses) are estimated at HUF 447,700, being 14.3% higher than a year earlier.

Regular average gross earnings reached HUF 449 500 in the business sector, HUF 431,900 in the budgetary sector, HUF 483 300 in the non-profit sector, representing growths of 12.5%, 14.6% and 33.8%, compared to the previous year. The fact that several educational institutions have been reclassified from the budgetary into the non-profit sector, following a change in their controlling authority in August 2021, contributed to the above average increase in regular average earnings in the non-profit sector, leading to a significant base effect in the first semester.

Real earnings rose by 11.8%, along with a 8,2% year-on-year increase in consumer prices.

Gross median earnings were HUF 382 000, surpassing by 14% the previous year’s value. Net median earnings including tax benefits were HUF 266,000, 15.6% higher than in the previous year.

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Analysts

Magyar Bankholding-Takarékbank chief analyst András Horváth said that the March wage rise, which beat expectations, was supported by pass-through of the minimum wage rise to the rest of the pay scale as well as employers’ efforts to attract and keep workers amid the high inflation environment. For the full year, real wages could climb over 5 percent, boosting household consumption, he added.

ING Bank senior analyst Péter Virovácz said the fresh data underpin the projection of experts at the lender for full-year wage growth of around 15 percent.

Source: MTI