Daily News Hungary economy

The average gross wage in Hungary rose by an annual 13.6 percent to 292,944 forints (EUR 940) in September, the Central Statistical Office (KSH) said on Wednesday.

Net wages grew at the same pace as gross wages, also increasing by 13.6 percent, to 194,808 forints.

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

Commenting on the data, the economy ministry’s state secretary for labour attributed the wage increase primarily to the long term agreements concluded by the government with the federations of employers and employees on wage hikes and payroll tax cuts in November last year.

Péter Cseresnyés told public news channel M1 that under the agreement that the minimum wage will rise by another 8 percent for unskilled workers and 12 percent for skilled workers next year after this year’s increase of 15 percent and 25 percent, respectively. The minimum wage increases have considerably affected other wages, which have increased by 13 percent, compared to 4-6 percent earlier, he said.

The payroll tax will drop by a further 2 percentage points in 2018, after a 5 percentage point cut this year, he said.

Source: MTI

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