In Hungary since 2010, net wages have increased spectacularly, by more than 84 per cent, family tax benefits included. As a result, parallel with employment, wages, too, are rising meaningfully in our country which improves the financial situation of Hungarian families.

In one year, based on the average of this year’s first five months, both gross and net wages have increased by more than 10 per cent, while real wages have risen by almost 7 per cent, and in consequence, real earnings have increased steadily in Hungary for more than six years.

Thanks to the six-year wage agreement concluded at the government’s initiative, the increasing work force demand of the private sector and pay rises in the public sector, both gross and net wages have increased by almost 40 per cent in the past three years.

From 1 January 2019, the amount of the benefit available to families with two children has increased further, and as a result, in their case, net wages have increased even faster than average. In the first five months of 2019, in the private sector earnings increased by 11.4 per cent on average compared with the year before, meaning that also in the market sector the positive trend of outstanding pay rises is steadily continuing. Employment, too, is rising continuously in the private sector; at businesses employing minimum five persons, the number of workers has risen by 64,000 in the past one year alone.

According to expectations, the six-year wage agreement could continue to boost employment and could also effectively help retain Hungarian work force in the country. Pay rises could continue in the coming years as well which could also boost the growth of the Hungarian economy through an increase in internal consumption.

(Ministry of Finance/MTI)