Would you come to work in Hungary for EUR 938 as the average salary per month?

Differences have increased between the different regions of Hungary regarding the average wages. Even though many Hungarians became unemployed or suffered salary reductions because of the crisis following the epidemic, the Hungarian Central Statistical Office still says that the gross average wage increased in the country by ten per cent. Recently, they said that the average income per month reached HUF 400 thousand (EUR 1,300), but they did not change their method of calculation to make it fit the current situation. Therefore, the real sum is much lower. Details below.

According to 24, the average salary of Hungarians working for companies employing at least five people reached HUF 401,800 (EUR 1,104) in September. However, the news website states that the calculation of the Hungarian Central Statistical Office (HCSO) is wrong. Firstly,

the smallest companies are not included,

but they pay much lower wages than the bigger ones. Furthermore, they do not calculate the people having a part-time job, even though their number rose significantly because of the crisis.

• Who won at the coronavirus crisis in Hungary?
• 43 per cent of Czech employees affected by coronavirus crisis

Meanwhile, there is no data on the website of the HCSO about the employees of small companies. Based on estimates, however, the HCSO  does not include 25 pc of the employees. As a result, Attila Udvardi, the director of GKI, a Hungarian economic research institute, says that the Hungarian state should publish all data relevant to the issue to be able to make more accurate calculations.

Between January and July, the reduction in the case of those having a full-time job was 236 thousand. If we modify that to February and July, the number grows to 327 thousand. Meanwhile, the number of those having a part-time job rose from 327 thousand to 460 thousand, and

the HCSO does not calculate with the latter.

Interestingly, 24 examined how much full-time employees could take home. The sum was HUF 1,113 billion in March, but that decreased by 110 billion in May, even though their number went down by 263 thousand. Meanwhile, the number of those having a part-time job increased by 176 thousand, but they get only HUF 30 billion more. As a result, Hungarians took HUF 80 billion less home in May than in March, before the start of the epidemic and the economic crisis.

Mr Udvardi says that such a trend was seen in 2009 after the financial crisis, as well as in 2012. Furthermore,

the curve of the recovery will probably not resemble a V,

so GKI says that in January 2021, the average pay rise in Hungary will not exceed five pc, and they did not include small companies in that calculation. 

Therefore, 24 says that despite the more than HUF 400 thousand the HCSO communicated, the real average salary in Hungary is about HUF 363,729 (EUR 1,000). Furthermore, if we consider small businesses, that might be lower, about HUF 341,530 (EUR 938).

The HCSO claimed before soon to publish data of the businesses employing less than five people, but they have not met that promise yet.

Source: 24.hu