Hungarian wages grow in June – Avarage net wage was 680 euros – UPDATE

The average gross monthly wage in Hungary stood at 329,600 forints (EUR 1,023) in June, up to an annual 11.2 percent, the Central Statistical Office (KSH) said on Wednesday.

Gross wage growth has been in the double digits since early last year, lifted by an agreement on minimum wage increases as well as a labour shortage.

The average monthly wage included 22,622 forints in bonuses and benefits.

The average net monthly wage was 219,167 forints (680 euros), also 11.2 percent higher.

Excluding the some 131,200 Hungarians in fostered work schemes, gross wages rose by 10.1 percent to 341,719 forints, while net wages stood at 227,243.

Fostered workers earned a gross monthly 81,772 forints on average in June, 0.1 percent more than a year earlier.

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As we reported before, there were 22,000 open jobs in the Hungarian IT sector in 2016. The situation worsened a lot since then. Some CEOs told the ICT Association of Hungary that they even had to withdraw from contracts and agreements because of the lack of workforce. Thus, the trend turned over: it is not the companies that choose their employees, but computer engineers choose where they want to work, read more HERE.

Rising wages and growing employment and investments are thanks to an economy on the up and up, Finance Minister Mihály Varga said, commenting on the latest wage data.

Varga told public affairs channel M1 that the data showed that the wage gap continued to narrow on the back of the wage agreement and changes in tax legislation. This narrowing is expected to endure in the coming months, he added.

Wage inequalities by region also declined, with growth in the most underdeveloped counties exceeding the average,

Varga said, adding that wages in public administration, construction, tourism and health care rose significantly. This is important in stabilising employment numbers and replenishment rates, Varga said.

Photo: MTI

Source: MTI