The Government is working to ensure that the 71-month upward earnings growth trend persists, Minister of State for Employment Policy and Corporate Relations Sándor Bodó said, commenting on the latest earnings data for the period January-November 2018.
According to the latest report by the Hungarian Central Statistical Office (KSH), in the period January-November 2018 gross and net earnings averaged HUF 327 200 and HUF 217 600, respectively. These constitute an increase of 11.5 percent year-on-year.
The Minister of State for Employment Policy and Corporate Relations stressed that earnings increased in both the public and private sectors, and the weight of public work schemes diminished. The steady growth in earnings was attributable to, among other factors, the Government-initiated wage agreement, the introduction of public sector career models and tax cuts.
Thanks to favourable trends, he noted, employees earned an extra month worth of wages in 2018.
The fact that earnings growth for those doing physical work was especially remarkable signals that physical labour has become more highly valued, the Minister of State pointed out. As another positive development Sándor Bodó mentioned the fact that in some disadvantaged regions, such as Baranya, Békés, Borsod-Abaúj-Zemplén and Hajdú-Bihar Counties, the rate of earnings growth was above-average.
The wage agreement, which was extended for another two years at the end of 2018, and the decrease of payroll taxes are expected to pave the way for further wage hikes, he added. Accordingly, the Government predicts that – parallel to job growth -- earnings in real terms are set to increase by more than 6 percent in 2019. Rising earnings may reduce the number of people migrating abroad, contribute to job and consumption growth as well as to economic expansion, he said.
(Ministry of Finance/MTI)
