Hungarian Minister Nagy claims: Wages in Hungary far outshine Romania’s

Márton Nagy minister national economy Romania Hungary

National Economy Minister Marton Nagy spoke at an event in Miskolc. Photo: MTI

National Economy Minister Márton Nagy spoke at an event in Miskolc on Monday, part of the Joint Venture Association’s Country Ride series.

Hungary is in “a good position”

Nagy said the government’s new economic policy action plan, a “precondition” for boosting economic growth over 3pc next year, was based on economic neutrality.

On the domestic front, he pointed to a gradual increase in retail sales and augured a further improvement in consumption as real wages rose 9-10pc. He also noted a significant increase in domestic guest nights, climbing used car sales and an 8-9pc rise in new car registrations.

Weighing external factors, Nagy said the “real breakthrough” would come when Germany’s economy, which impacts Hungary’s exports as well as its FDI, “pulls itself together”.

In terms of energy, Hungary is in “a good position”, Nagy said, with dynamically growing solar capacity and an expansion of the Paks nuclear power plant in the pipeline.

He said the Demján Sándor Programme for scaling up SMEs would make HUF 1,410bn available to businesses.

Hungarian wages are better than Romanian wages

Márton Nagy gave an interview to Index. In response to their questions, the minister said that the Romanian average earnings statistics also include elements of earnings that do not appear in the Hungarian earnings statistics, such as travel allowances and cafeteria.

Therefore, to compare apples with apples, you should use the Hungarian statistics as a basis for the labour income and not the average earnings. In the first three quarters of 2024, the average gross labour income in Hungary was HUF 678 thousand, which is EUR 1723 converted, while in Romania, it was RON 8379, which is EUR 1648 converted, i.e., almost EUR 40 lower.

According to Márton Nagy, the Romanian economy is unsustainable in the long run, as public wages are pulling the national average, only increasing the twin deficits. As an example, he cited two sectors where Romanian net average wages significantly exceed those of Hungary: public administration and information communications.

According to Márton Nagy, gross income in Romania is taxed more than the average wage in Hungary, so the average net labour income in Hungary is almost EUR 120 higher than in Romania.

He underlined that in 2024, in Hungary, the tax base can be reduced by HUF 66,670 (EUR 166) for one child, HUF 133,300 (EUR 333) for two children, and HUF 220,000 (EUR 550) per child for three or more children, while in Romania the maximum tax base is EUR 25 for one child, EUR 47 for two children and EUR 67 for three children. Hungary has a much more family-support-based tax system, he said.

Márton Nagy said the Hungarian economy is also stronger because 844,000 people in Romania receive the minimum wage, 18.7 percent of the workforce. In contrast, in Hungary, 214,000 people earn a minimum wage (4.6 percent of the employed) and 324,000 earn a guaranteed minimum wage (6.9 percent of the employed). In relative terms, more people earn a minimum wage in Romania than in Hungary.

“According to the latest data, the effective Hungarian minimum wage is the 17th highest in the EU and among the highest in the region, ahead of the Czech Republic, Slovakia, Romania and Bulgaria. The Romanian labour income data are sample-derived estimates, while the domestic one is based on institutional data sources, so the domestic statistics are much more reliable,” he told Index.

From taxes and salaries to cost of living and family benefits, an insightful comparison between Romania and Hungary reveals slight contrasts in quality of life. While it is an ambitious commitment to demonstrate which of the two countries offers a better life, a video showcased some interesting points.

Read also: How rude! Romanian President showed his back to PM Orbán for 20 seconds – VIDEO

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4 Comments

Larry says:

25/11/2024 at 18:25

Hungary has abandoned the poor. Peter Magyar has been banned from entering many public institutions after uncovering inhuman conditions in orphanages. My friend recently told me that her brother just died of starvation in Hungary. We are waiting for the official cause of death but I truly wonder whether the Fidesz government would pressure physicians not to put that on a death certificate. I attach an article about how people in Hungary are repeatedly donating blood plasma for cash just to survive. This is the real Orbanistan.
https://www.theguardian.com/world/2024/nov/25/hungary-most-deprived-roma-donate-blood-plasma-survive-photo-essay
Londonsteve says:

25/11/2024 at 18:49

Wow, Hungarian gross wages are 40 Euros higher a month. Life is clearly so much better much when you’ve got an extra 10 Euros a week (before tax). What he doesn’t mention is the aspect of purchasing power parity, namely, that Romanian wages go significantly further when spent in Romania than Hungarian wages do when spent in Hungary, which is clearly visible in the consumption stats. Hungarians have nothing left to spend once they’ve covered their essential costs whereas Romanians clearly do. It’s comical that we’re even comparing the two countries, 15 years ago Romania was poverty stricken, dealing with the legacy of Ceaucescu, Hungary was head and shoulders in front of its eastern neighbour yet now Hungary’s economy minister has to defend Hungary’s honour in the face of a rising Romania. What next, excuses why Bosnia is at risk of overtaking Hungary in the league tables?

Here’s something to ponder. According to Numbeo that average monthly net salary in Sofia is a whole 100k higher than in Budapest and that’s the capital of the poorest country in the EU. Purchasing power is also markedly higher in Sofia which isn’t wholly surprising when people earn on average so much more.
Norbert says:

25/11/2024 at 19:59

Which country has the highest VAT rate in the world? And who eventually pays VAT?

https://www.avalara.com/vatlive/en/country-guides/europe/romania/romanian-vat-rates.html

Fazit: any “benefit” to the consumer is … very quickly eroded. Or worse!

https://www.avalara.com/vatlive/en/country-guides/europe/hungary/hungarian-vat-rates.html
"The True measures of a Government - can be found in HOW it treats its Most Vulnerable." : says:

26/11/2024 at 08:16

In response, to the WRONGNESS – the falsehood of these words, the FABRICATION of these words, from the mouth of Minister Nagy, offers AGAIN an OPPORTUNITY – to the leading opposition party of Hungary, under the leadership of Peter Magyar – Tisza Party to – Shame & Humiliate – the Orban led Fidesz Government of Hungary.
In response to the “mouth” of Nagy, it is IMPERATIVE that – Truth & Facts – supported by “other” documents that DRIVE penetrate DEEPER that add to the growing gargantuan list, coming out, being PUBLICHLY exposed, into the “Toxic Cultures” – which Lies after Lies are of there “Creed” – the Orban led Fidesz Government of Hungary.
HOW much LONGER will the millions of Hungarians, there lives, the “quality of there LIVES” – that have been DECAYED / destroyed, placed them in positions, just living from day to day, that there FUTURE, the future of there children, of there grand-children, the future of generations of Hungarians, remain Endangered ???
Poverty – FACT – we have 1.1 million Hungarians living in POVERTY – that latest factual information and figures/statistic’s indicate nears 1.2 million living in POVERTY.
WHAT is the “Zenith” – it will Increase, the number, that are DRIVEN, to live in POVERTY by the Orban, the Fidesz Government – of there – OWNERSHIP ???
The word “Mortal” – can be rightfully added to the growing list the Orban – Fidesz Government have “Guilt on there Hands” for establishing – CREATING in Hungary.
Orban, the Fidesz Government have FAILED us – individually, in Millions, and our country – Hungary.