Hungarian gross wages rise by 5.7 pc in June

Budapest, August 19 (MTI) – The average gross wage in Hungary was 259,875 forints (EUR 837) in June, up by 5.7 percent from the same month a year earlier, the Central Statistical Office (KSH) said on Friday.

Net wage growth outpaced the increase, rising by 7.3 percent to 172,818 forints, because of a one percentage point cut in the personal income tax rate from January.

Analysts polled by MTI said that the upward trend could continue, supported by domestic consumption.

Takarékbank analyst Gergely Suppán said the annual gross wage increase could be 5.6 percent, while in net terms the increase could reach 7.2 percent in light of the tax changes. With annual inflation seen at 0.6 percent, the real wage increase could be 6.6 percent, he said.

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Erste Bank’s Gergely Ürmössy said he expected an annual gross wage increase of 6-7 percent.

Dávid Németh of K&H Bank said the statistical figures came as no surprise, adding that apart from cuts in the personal income tax and higher minimum wages employers paying higher salaries in sectors hit by labour shortage will also support the trend to continue. He added that many companies will ensure pay hikes in the second half of the year, which may result in a leap in the trend.

According to Németh, this year’s real wage increase could be around 7-8 percent, which could slow down to 4-5 percent in 2017, due to an expected inflation of 2 percent.

Photo: infoszfera.hu

Source: MTI