The average gross monthly wage for full-time workers in Hungary rose by an annual 9.0 percent to 371,131 forints (EUR 1,150) in April, the Central Statistical Office (KSH) said on Friday.

Net wages grew at the same pace, reaching 246,802 (EUR 765) forints.

Calculating with twelve-month CPI of 3.9 percent in April, real wages were up by 4.9 percent.

Excluding the 101,900 Hungarians in fostered work programmes, the average gross wage rose by 7.9 percent to 381,749 forints ( EUR 1,183), while net wages grew at the same rate to 253,863 forints.

Excluding fostered workers, the average gross wage in the business sector, which includes state-owned companies, rose by 10.2 percent to 390,243 forints (1,209 euros). The average wage in the public sector increased by 0.8 percent to 364,073 forints.

Full-time fostered workers earned gross 82,506 forints (255 euros) in April, 0.4 percent less than a year earlier.

Since January KSH has revamped its data sourcing for wage statistics: it is phasing out its practice of monthly data collection and instead getting data on wages and headcount from the National Tax and Customs Authority (NAV) and, in the case of the public sector, from the State Treasury. While reducing the data provision burden, the new sources bring a richer set of data.

The data sources show that in January-April average gross monthly wage was highest in the finance and insurance sector, at 671,600 forints (2,081 euros), and lowest in social health care services, at 234,000 forints (725 euros).

In January-April, gross wages rose by an annual 10.4 percent to 356,900 forints and were up by 9.4 percent without fostered workers at 367,400 forints. Excluding fostered workers, business sector gross wages rose by 11.3 percent and public sector wages rose by 4.1 percent in the period.

Men employed full-time earned monthly gross 391,400 forints (EUR 1,213) on average during the period, while women earned 322,900 forints. The rates rose by 11.3 percent and 9.2 percent, respectively, on an annual basis.

Those under 25 years earned a monthly gross average of 272,300 forints (844 euros), the monthly average was 372,100 forints for those aged between 25 and 54 years and 346,800 forints for those over 54 years old.

Analyst Péter Virovácz of ING Bank said the April single digit wage growth came as somewhat of a surprise, as it was last seen in January 2017. The slower pace of wage increases was certainly tied to lower wage increases in the government sector.

Wages in the private sector still kept growing at a double digit rate, with the pace above average in the construction and manufacturing sectors and below average in some segments of the services sector.

In 2019 wage growth could average around 10 percent in the economy as a whole.

Analyst András Horváth of Takarékbank said wages could grow by a little more than 10 percent this year and real wage growth could be 6.5 percent with chances of it being higher. Wage growth in April was driven by a shortage of skilled labour and the increase of minimum wages for said skilled workers.

As we wrote yesterday, Hungary’s three-month rolling average jobless rate was 3.4 percent in March-May, edging down from 3.5 percent in the previous three-month period and down from 3.7 percent twelve months earlier, read more HERE.

Source: MTI

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