In the period January-February 2018, net and gross earnings rose by 12.9 percent year-on-year, the largest increase in the past one-and-a-half decades. Thanks to low inflation, this corresponds to real earnings growth of 10.7 percent, which factor substantially enhances the financial status of Hungarian families and increases their purchasing power.

The six-year wage agreement has indisputably achieved what had been expected of it: earnings grew markedly after tax cuts had been introduced and the minimum wage and guaranteed minimum wage had been raised in Hungary.

The steady earnings growth trend of 62 months aptly shows that it is increasingly worth it to have a job in Hungary. Since 2010, net earnings have increased by 56 percent, thanks mainly to the six-year wage agreement and public sector career models. Double-digit wage growth has taken place parallel to high job growth and this signals that the Hungarian economy has been heading in the right direction.

At the beginning of 2018, gross earnings rose to HUF 309 thousand, while net earnings increased to HUF 205 thousand – and including family tax allowances they were ever higher, HUF 214 thousand. Steadily rising real earnings are also expected to boost domestic consumption and this in turn is predicted to have a favourable effect on the entire economy in coming months.

(Ministry for National Economy)