Have the wages of manual workers skyrocketed in Hungary?

Between the fourth quarters of 2022 and 2023, the average gross hourly wages of manual workers increased by almost 20 percent in Hungary. Here is one simple explanation for the rise in wages.

Portfolio.hu summarised the analysis from the Trenkwalder employment agency of the gross hourly wages of unskilled workers and trained manual workers in 2022 and 2023. The agency found that while the gross hourly wage was HUF 1,630 (EUR 4.1) in the last quarter of 2022, the average wage of a manual worker had risen to HUF 1,952 (EUR 4.9) in the same period of 2023.

How have the wages of manual workers changed in the past year?

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According to Trenkwalder’s data, the average hourly wages of manual workers ranged from HUF 1,700 to HUF 1,900 (EUR 4.3 to 4.8) at the end of 2023. Figures from the Central Statistical Office also show that the gross average salaries of unskilled workers increased from 2022 to 2023: they found that the wages of the lowest-earning one-fifth of society increased by 17.5 percent.

The increase in the national minimum wage played a large role in this upward trend, as it propelled wage increases usually due in January forth, hiking up incomes in December already.

“Without this measure, according to our estimates, the annual rate of wage increase would have been between 13-15 percent. Since inflation rose by only 5.5 percent in December compared to the level of a year earlier, it can definitely be stated that real wages are back on the growth track after the decline experienced in 2023,” Portfolio quotes Viktor Hamrák, Trenkwalder’s director of services, as saying.

In a geographical comparison, there are no major differences in the country: only Central Hungary and Budapest show outstanding wages. The gross hourly wages of manual workers were close to HUF 2,100 (EUR 5.3)  in the central Hungarian regions and HUF 2,600 (EUR 6.6) in the agglomeration of ​​the capital.

The gross average salary of middle managers may also increase this year

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Interestingly, the rise in earnings was more moderate in the higher wage categories: the financial advisor Moore Hungary reported a wage increase of 10.3 percent in 2023 compared to the fourth quarter of 2022 for about 500 middle managers of more than 60, mostly internationally owned domestic companies.

According to data from the Central Statistical Office, the lowest earners received a HUF 244,000 (EUR 618) monthly gross last year, while the top 20% earned a HUF 1,240,000 (EUR 3,144) monthly salary. The difference between the worst and best-paying positions narrowed slightly last year: the average salary of the top earners increased by only 12% (compared to a 17.5% increase for the 20 percent at the bottom of the wage hierarchy).

This can be explained by the fact that, as Moore Hungary’s managing partner, Péter Hajnal, pointed out, the salaries of intellectual middle managers are usually raised in January only – as they were not affected by the minimum wage increase measures. Taking this into account, the double-digit hike in their salaries by December is already remarkable.

As competition and turnover in these jobs are steep, companies will be likely to try and limit the exit rate in their firm in the first quarter of 2024 with pay raises. Accordingly, Péter Hajnal highlights:

“Although many businesses continue to struggle with financing problems caused by the recession, the majority of workplaces will ensure a renewed increase in real wages even at the middle management level.”

Read also:

• Positive surprise: Wages grew the most in Hungary in the last 10 years – HERE
• Easy money? These are the most overpaid jobs in Hungary – Read HERE

Source: Portfolio