Net average wage in Hungary reaches EUR 649 in June

The average gross monthly wage in Hungary rose by annual 14.4 percent to 297,251 (EUR 976) forints in June, the Central Statistics Office (KSH) said on Tuesday.

Net wages grew at the same pace as gross wages did to reach 197,672 forints (EUR 649). While the median average wage in EU is about EUR 1,520 not all countries are equal, so for example the largest average salary have been registered in Denmark (EUR 3,095) while the lowest in Bulgaria (EUR 406), Hungary has the third lowest net wage in EU.

The KSH noted that wages have been boosted by a higher minimum wage as well as pay increases in certain segments of the public sector and at state-owned public service provider companies.

Excluding the 169,000 Hungarians in fostered work programmes in June, the average gross wage rose 12.9 percent to 311,388 forints. Net wages stood at 207,073 forints.

The number of fostered workers was down from 218,200 in the same month a year earlier.

The gross wage growth in June of 14.4 percent and growth of 12.5 percent in the first half of the year chimed with the government’s expectations, the economy minister told public television on Tuesday, after the release of the KSH data. Mihály Varga insisted that wages would continue to rise throughout the rest of the year, as would the employment rate.

Varga said the government strove to improve its long-term competitiveness, not through cheap labour, but by being part of a value-added chain.

Whereas government measures in the past few months have had a positive impact on wage growth, pay also rose thanks to continually higher demand on the labour market due to the strength of the economy, he said.

The Economy Ministry released a statement saying that real wages had risen in an unbroken streak for four-and-a-half years. It added that wages in the private sector had risen in June at a rate unmatched over the past 15 years.

The June wage increase came as a positive surprise to analysts interviewed by MTI.