Hungary is the 3rd-cheapest country in Europe – it is not such good news as it may seem
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According to the latest statistics presented by Eurostat, Hungary is the third-cheapest country in the European region in terms of the cost of the labour force.
Although this is a promising number for multinational corporations, employees might not find it that appealing. The cost of the labour force is only cheaper in Romania and Bulgaria, but Forbes writes that, according to current trends, Hungary might soon be the cheapest.
Within European Union Member States, Hungary has the second-cheapest labour force; corporations pay approximately €10.4 (3,840 forints) for each working hour per employee.
It is no surprise that foreign corporations are happy to see these numbers as they are looking for a well-trained but easily affordable workforce to set up their subsidiaries or to expand their reach.
However, as Forbes points out, employees are not that happy to see these statistics. Moreover, this also means that Hungarians are one of the lowest-earning countries within the EU.
To make matters even worse, this €10.4 even includes every expense a company has to pay after their employees, meaning that the actual wage the worker receives is even lower than this.
Currently, corporations have to pay €8.5 per working hour for workers in Romania and €7 per working hour for workers in Bulgaria. If Hungary is not careful, it can easily fall to the bottom since Romania doubled and Bulgaria also increased wage costs by two and a half times, while Hungary has only managed to do so with an increase of 33.3%.
It’s a corrupted system in here, salaries in an office is similiar to communist button factory labour. And that scares brilliant minds away. Look what happens in Kyndryl- total failm
Can DNH get someone from Fidesz to elaborate how the Forbes’ analysis is terribly wrong? Should be entertaining!