Earnings in real terms increased markedly, by 10.2 percent year-on-year in the first quarter of 2018. Gross and net earnings both gained 12.4 percent in the observed period. Thanks to the six-year wage agreement concluded in November 2016, earnings were up, in the period January 2017-March 2018, by more than 20 percent within the national economy. This growth has helped narrow the wage gap with the EU. The steady real earnings growth trend prevalent for more than five years proves that having a job has been increasingly worth it in Hungary.

Thanks to the six-year wage agreement, rising labour demand in the private sector and public sector wage hikes, gross and net earnings both increased by 12.4 percent in the period January-March 2018.

Net average earnings rose to HUF 210 000 excluding family tax allowances. Taking into account family tax allowances, net earnings averaged HUF 219 000. Parallel to minimum wage growth, earnings have also climbed steadily higher. Compared to 2010, net earnings rose on average by 36.3 percent (including family tax allowances) by the year 2017. Earnings at employees with two and three children grew even more, by some 46 percent and 65 percent, respectively, in 2010-2017.

In January-March 2018, gross and net earnings in the private sector were both up by 10.7 percent year-on-year. Within that, earnings growth in the case of manual workers was even higher, 13.2 percent, and this shows an intact positive wage trend in the private sector.

The Government-initiated six-year wage agreement is expected to continue to encourage job-seeking and help retain Hungarian labour force.

(Ministry of Finance)