Hungarian wages continue to climb, real earnings outpace inflation

The average gross wage in Hungary rose 13.1pc year-on-year to HUF 628,800 (EUR 1,568) in August, according to data released by the Central Statistics Office (KSH) on Tuesday.

Net wages climbed at the same pace to HUF 418,100. Real wages rose 9.4pc, calculating with August CPI of 3.4pc. The gross median wage increased by 15.6pc to HUF 520,000, KSH reported. Hungary’s statutory monthly minimum wage was raised by 15pc to HUF 266,800 for unskilled labourers and by 10pc to HUF 326,000 for skilled workers from December 1.

Excluding Hungarians working full-time in fostered work programmes — who earned an average gross of HUF 132,500 in August — the average gross monthly wage was HUF 639,200. The average gross wage in the business sector, which includes state-owned companies, rose 12.5pc to HUF 633,100. The average gross wage in the public sector climbed 14.4pc to HUF 609,200.

In the non-profit sector, the average gross wage increased 15.8pc to HUF 641,600. For the period January-August, gross wages averaged HUF 634,300 and net wages came to HUF 421,800, both up 13.9pc from the same period a year earlier.

Commenting on the fresh data, Sándor Czomba, the state secretary for employment policy, said real wages had climbed continuously for a year, while employment rose. Since 2010, the average paycheque has tripled, while 1 million more people are working, he added. He noted that boosting the purchasing power of working Hungarians was a pillar of the government’s recently unveiled economic policy action plan.

Related measures include the launch of a credit scheme for young blue-collar workers, the doubling of tax preferences for families with children, and a three-year wage agreement between employers and unions. The government targets a monthly minimum wage of EUR 1,000 by 2028, while the average wage climbs to HUF 1 million, he added. Czomba said economic growth was a condition for accelerated wage growth.

Read also:

• National economy minister: Hungarian government targets rapid wage convergence
• Orbán cabinet targets ‘significant’ minimum wage rise for 2025

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