Hungarians have one of the lowest salaries in Europe

The average gross wage in Hungary rose by an annual 13.1 percent to 941 euros (290,450 forints) in July, the Central Statistical Office (KSH) said on Wednesday.

Net wages grew at the same pace as gross wages, also growing by 13.1 percent, to 626 euros (193,149 forints).

The KSH noted that wages have been boosted by a higher minimum wage as well as pay increases for social services and health-care workers and some state employees.

Excluding the 164,200 Hungarians in fostered work programmes in July, the average gross wage rose by 11.8 percent to 303,824 forints, while net wages also increased by 11.8 percent to 655 euros (202,042 forints).

Full-time fostered workers earned 264.25 euros (81,500 forints) before tax on average

during July, 3.4 percent more than in the same period a year earlier.

The number of fostered workers was slightly down from the 169,000 registered in June. Their number fell by an annual 21.6 percent in July.

Economy Minister Mihaly Varga told a news conference that the rise in real wages were thanks to government measures and market effects. He said around two-thirds of the wage growth could be attributed to government policymaking, including the wage deal with employers and unions and the career model scheme. Varga added that the stronger economy had a positive effect on real wages, since increasing demand for labour also encouraged employers in the private sector to raise wages.

The minister said the growth in wages did not go hand in hand with a shrinking economy and that inflation remained low.