In the first nine months of 2016, wages in real terms rose by 7.6 percent within the national economy. Thus, an upward wage trend has been in place for 45 months in Hungary. In the private sector – at enterprises with at least five employees – the number of people in employment was up by 64 thousand compared to September 2015.

In the initial nine months of the year, gross and net wages averaged HUF 257 900 and HUF 171 500 (excluding family tax allowances), respectively. Taking into account the effect of family tax allowances,  the Hungarian Central Statistical Office estimates that average net wage was HUF 178 700. Excluding public work scheme wages, gross wages averaged HUF 273 600 in the private sector, HUF 272 600 in the public sector and HUF 248 400 in the non-profit sector in the period January-September 2016. Accordingly, in the observed period wages in real terms rose by 7.6 percent within the national economy and by 8 percent including the effect of public work wages.

Wages in real terms soared in all three major sectors: they were up by 6.8 percent in the private sector, 11.4 percent in the public sector and 7.1 percent in the non-profit sector.

Wages in real terms have been on the rise for three years-and-a-half in Hungary, thanks to repeated wage hikes, the Job Protection Action, favourable inflationary environment and rising minimum wages. The upward wage trend signals that Hungary is getting stronger and excellent macro-economic data indicate further real wage increases.

(Ministry for National Economy)