Surprising! Hungary ranks among the top countries globally for real wage growth

Hungary has ranked third among OECD countries where wages have risen faster than inflation over the past decade, according to a new international study analysing income and price trends between 2014 and 2024.

The research, published by Capital on Tap, examined OECD data to compare total wage growth with cumulative inflation, revealing which countries have managed to protect – or even improve – workers’ purchasing power despite global cost-of-living pressures.

Hungary is among the top performers worldwide

According to the study, total wages in Hungary increased by 130.78% between 2014 and 2024, while cumulative inflation stood at 65.01% over the same period. This resulted in real, inflation-adjusted wage growth of 39.86%, placing Hungary third overall, behind only Latvia and Lithuania.

The findings suggest that, despite periods of high inflation in recent years, Hungarian workers are significantly better off in real terms than a decade ago.

Why have wages risen so strongly in Hungary?

Researchers attribute Hungary’s strong performance to several factors, including:

• Rapid industrial development
• Sustained foreign direct investment
• Regular minimum wage increases
• Expansion in manufacturing, automotive, and export-oriented sectors

However, the study also notes that inflation volatility and rising household costs have reduced the everyday impact of these gains, meaning many families still feel financial pressure despite higher nominal wages.

As we wrote today: Fresh official data explains Hungary’s inflation rate in 2025

Central and Eastern Europe leads the wage growth rankings

Hungary’s result fits into a broader regional trend. The top three countries for real wage growth all come from Central and Eastern Europe:

• Latvia ranked first, with real wage growth of 53.75%
• Lithuania followed closely with 47.01%
• Hungary placed third with 39.86%

The report highlights that EU integration, economic convergence, productivity growth, and investment inflows have allowed these economies to deliver faster wage growth than many wealthier Western countries.

How does Hungary compare with Western Europe and the UK?

While Hungary ranked near the top, several large Western economies performed far worse.

The United Kingdom ranked only 24th, with wages rising 36.59% over the decade, barely exceeding 33.34% inflation, resulting in real wage growth of just 2.43%.

Countries such as Germany, France, Italy, and Spain also recorded significantly lower real wage gains, while some – including Italy and Greece – saw real wages decline once inflation was taken into account.

What does this mean for Hungarian workers?

In real terms, the data shows that Hungarian wages have grown substantially faster than prices over the long run, even if short-term inflation spikes have temporarily reduced purchasing power.

Over the past decade, Hungary has emerged as one of the strongest performers globally in protecting workers’ incomes against inflation – a result that places it well ahead of most Western European economies, despite ongoing cost-of-living challenges.