In the first half of 2016, wages in real terms rose by 7.5 percent – according to the latest flash report of the Hungarian Central Statistical Office (KSH). Thus, an upward wage trend has been in place for three years and a half. Since June 2015, the number of people in employment has increased by some 65 thousand at enterprises with at least five employees.

In the initial six months of 2016, gross and net wages averaged HUF 258 000 and HUF 171 600 (excluding family tax allowances). Including family tax allowances, the KSH estimates that the average net wage was HUF 178 800. Excluding the effect of public worker wages, gross wages averaged HUF 275 300 at enterprises, HUF 268 000 at budgetary institutions and HUF 247 400 at non-profit organizations.

Within the national economy, wages in real terms were up, with and without public worker wages, by 7.5 percent and 8.2 percent, respectively. The increase of wages in real terms (excluding public work schemes) has been outstanding in all the three categories: they grew by 6.8 percent in the private sector, 12 percent in the public sector and 8 percent in the non-profit sector.

Low inflation, tax reductions, the Job Protection Action Plan as well as public and private sector wage hikes have all contributed to the steep rise of wages. Wage growth is having a positive impact on the financial status of Hungarian families.

(Ministry for National Economy)