Shocking: Half of the working Hungarians earn less than EUR 940/month

The average gross wage in Hungary rose 11.9pc year-on-year to HUF 695,100 in November, data released by the Central Statistics Office (KSH) on Thursday show. Based on the KSH, half of the Hungarian employees earn less than EUR 940/month.

Average net median is 940 EUR/month

Net wages climbed at the same pace to HUF 462,200. Real wages rose 7.9pc, calculating with November CPI of 3.7pc. The gross median wage increased 12.5pc to HUF 550,800, which is net HUF 383,400 (EUR 940). That is 13.3% higher than in November 2023. Hungary’s statutory monthly minimum wage was raised by 15pc to HUF 266,800 for unskilled labourers and by 10pc to HUF 326,000 for skilled workers from December 1, 2023, KSH wrote.

Excluding Hungarians working full time in fostered work programmes — who earned on average gross HUF 114,500 in November — the average gross monthly wage was HUF 706,600. The average gross wage in the business sector, which includes state-owned companies, rose 11.3pc to HUF 695,100. The average gross wage in the public sector climbed 13.9pc to HUF 692,000. In the non-profit sector, the average gross wage increased 12.8pc to HUF 703,600.

For the period January-November, gross wages averaged HUF 639,500 and net wages came to HUF 425,200, both up 13.5pc from the same period a year earlier.

General govt deficit close to HUF 4,096bn at year-end

Hungary’s cash flow-based general government deficit reached HUF 4,095.8bn at the end of December, the National Economy Ministry said in a detailed release of data on Wednesday. The central budget had a deficit of HUF 4,003.9bn at the end of the month and the social security funds were HUF 230.1bn in the red, but separate state funds were HUF 138.2bn in the black.

The deficit widened from HUF 3,284.3bn at the end of November. The accrual-based deficit is expected to be around 4.8pc of GDP, the ministry said. The ministry said the year-end gap was more favourable than expected and noted that the 2024 budget had ensured the protection of Hungarian families and pensioners amid the wartime situation.

In spite of the difficult external circumstances, the ministry said the government had preserved the results of its economic policy, while the budget ensured resources for defence, regulated utilities prices, family policies and maintaining the value of pensions.

“Additionally, the government significantly improved balance indicators, substantially reducing the deficit relative to GDP from 6.7pc in 2023,” it added. Spending on pensions rose by HUF 474.2bn to HUF 6,853.9bn, while expenditures on state-subsidised prenatal baby support loans increased by HUF 31.3bn to HUF 208.3bn. A 32.2pc pay rise for teachers resulted in HUF 406.1bn of additional expenditures.

The ministry noted that revenue from taxes and contributions had climbed by 8.7pc. In 2025, the government will continue to improve balance indicators and targets a 3.7pc-of-GDP deficit and declining state debt levels amid better economic performance, high employment and growing wages, the ministry said.

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