The Hungarian Central Statistical Office (KSH) reported earlier today that in November 2014 and in January-November 2014 wages in real terms were up by 1.8 percent and 2.9 percent, respectively, within the national economy. Thus, the positive wage growth trend has been unbroken for twenty-three months in a row.

In comparison to November 2013, the number of private sector jobs increased massively, by more than 47 thousand, at enterprises with at least five employees.

In the initial eleven months of last year, average gross wage was HUF 235 900 within the national economy, within which the wage of private and public sector employees averaged HUF 250 500 and HUF 208 900, respectively. Excluding public work employees, average gross wage was HUF 248 000 in the initial eleven months of last year, and thus private and public sector employees earned on average HUF 251 900 and HUF 239 900, respectively.

Average net wage within the national economy – excluding family tax allowances – was 2.7 percent higher in the observed period, and due to the 0.2 percent drop of consumer prices wages in real terms increased by 2.9 percent. Excluding the effect of public work schemes, wages in real terms grew by as much as 5 percent in this eleven-month period. Within that, wages in real terms increased by 4.6 percent in the private sector, by 5.8 percent in the public sector and by 6.6 percent at non-profit organizations. Meanwhile, the wages of public work employees edged also higher by 1.8 percent.

As far as November data are concerned, net wages – excluding family tax allowances – averaged HUF 164 600 (or HUF 172 400 without public work wages) within the national economy. Private, public and non-profit sector employees earned net wages of HUF 174 400 (or HUF 175 300 excluding public work employees), HUF 146 100 (or HUF 166 900 excluding public work employees) and HUF 144 100 (or HUF 155 200 excluding public work employees), respectively.

Family tax allowances, rising gross and net wages, lower prices and subsequent higher real wages have significantly improved the financial position of households and revived domestic demand which, in turn, is fuelling Hungary’s economic growth.

For detailed data please see www.ksh.hu

(Ministry for National Economy)