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Hungary gross wages continued to grow in the end of the year

Hungary gross wages continued to grow in the end of the year

Average gross wages in Hungary grew by an annual 13.5 percent to 327,713 forints (EUR 1,050) in December, the Central Statistical Office (KSH) said on Tuesday.

Net wages climbed at the same pace to 217,929 forints.

Calculating with annualised CPI of 2.1 percent in December, real wages rose by 11.2 percent.

Excluding the 150,300 Hungarians in fostered work programmes, the average gross wage increased by 12 percent to 341,969 forints.

New-Year

Full-time fostered workers earned a gross monthly 82,492 forints on average in December.

For that matter, net wages grew at the same pace as gross wages a month earlier, also climbing 13.0 percent to 214,764 forints. KSH noted that wages have been boosted by a higher minimum wage as well as pay increases in certain areas of the public sector and at state-owned utility companies.

Commenting on the data, Péter Cseresnyés, the economy ministry state secretary for labour affairs, told public television that wages have been growing for five consecutive years. The government cut taxes on wages in 2017 and agreements with its partners in the social sector point to further reductions in the coming years, he said. Other labour policy measures as well as developments in the economy also boosted growth, he said.

The economy ministry said in a statement that employees took home almost an extra month’s wages in 2017 compared with 2016.

Wages grew by an average 36 percent between 2010 and 2017, taking into account family tax allowances, the statement said.

Since January 1 this year, the basic minimum wage has gone up by 8 percent and the minimum wage for skilled employees is set to grow by 12 percent. Further tax cuts will also help to close the gap between Hungarian and EU wages, the ministry said.

Featured image: Daily News Hungary

Source: MTI

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