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Romanian minimum wage higher than Hungarian?
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The Hungarian minimum wage has risen up to 149,000 Hungarian Forints gross (463 Euros) – 99,085 HUF in net price (308 EUR). If we compare it with the regional countries’ minimum wage, is it relatively a high amount or not? What if we compare the region’s increase rates? Lot of questions to be answered below.
The question was risen if Romania surpasses Hungarian wages or not in October 2018. The question was answered thoroughly in index.hu’s article, from various point of examination.
In October 2018, we have written about Romania’s rise in minimum wage that had the chance to exceed Hungary’s. See the article here.
If we look at the region (Czech Republic, Slovakia, Poland, Romania and Hungary) the typical wage increase rate were about seven and nine percent in the whole. In this context Hungary is in the middle. Although Poland, Czech Republic, Slovakia and Hungary had similar tempo in minimum wage increase rate, Romania’s wages increased on volume by far. Meaning, Romanian wages grew faster than the other regional countries, yet it is quite questionable, if this pace is sustainable.
Examining gross amounts, the highest gross wages are in Czech Republic, then Slovakia, Poland, Hungary and Romania. Net scores however, are highest in Slovakia, thirdly Poland (because of higher tax rates) and Hungary in the fourth place.
Next figure shows regional Purchasing Power Parity in gross (Eurostat data). Yet Romanian gross minimum wage was higher than Hungarian, only for a short period of time. In 2018 and 2019 Hungarian wages are higher, yet below Polish, Czech and Slovak wages.