In Hungary, real wages have increased steadily for more than six and a half years, meaning for 79 months; in the past one year alone, there has been a seven-per cent increase, Finance Minister Mihály Varga said commenting on the latest earnings data.

The Finance Minister added that, primarily in response to tax reductions, wage increases in the private and public sectors, and the significant economic growth, since 2011 net earnings have increased by 88 per cent, including family tax benefits.

The government is committed to raising the incomes of Hungarian families and creating financial security for them, Mr Varga stated, stressing that since 2010 the real value of net earnings, not including benefits, has increased by 40 per cent, while with family benefits, it has increased by more than 47 per cent on average. Between 2010 and 2018, the real earnings of families with two children increased by 59 per cent, while those of families with three children by 76 per cent, in contrast to the terms of previous governments when there were no family benefits at all. In a family with three children where both parents have average earnings, since 2010 their net earnings have doubled, thanks to the family tax benefit.

Mr Varga stressed that, by encouraging the efforts of businesses to improve efficiency, the wage agreement concluded at the government’s initiative – which lays down a significant increase in the minimum wage and the guaranteed wage minimum as well as a meaningful reduction in the taxes of employers – contributes to a further rise in employment in high added-value jobs. Based on the performance of the Hungarian economy in the past few years and its prospects, we are expecting a continuation of favourable trends on the labour market, an ongoing rise in wages and, parallel with this, a further expansion in consumption also during the period ahead, the Minister added.

(Ministry of Finance)