Within the national economy, wages in real terms increased by 3 percent in the initial seven months of the year, according to the flash report of the Hungarian Central Statistical Office (KSH) released earlier today. In the period January-July 2014, the average gross and net wages of full-time employees were also 3 percent higher year-on-year. Furthermore, in July the number of employees at enterprises with at least five employees was up by 52 thousand over the past year.

In the initial seven months of 2014, gross monthly wages averaged HUF 235 200 within the national economy. Private and public sector employees earned on average HUF 250 400 and HUF 207 300, respectively.

Excluding public work employees, gross monthly wages within the national economy averaged HUF 247 000 in the initial seven months of the year: wages of private and public sector employees were on average HUF 251 800 and HUF 237 400, respectively. These figures show wage increases of 5.5 percent within the entire economy and 4.8 percent and 7.5 percent and at the private and public sectors, respectively. Net wages in real terms showed the same improvement, as inflation was flat. However, this year’s extension of the scope of family allowances added on average 0.8 percent more to real wage growth. Average net wages including the effect of family tax allowances were HUF 160 900.

In July, average net wage excluding public work employees was HUF 162 600. Private and public sector employees earned HUF 163 500 and HUF 161 700 per month, respectively. Wages in real terms were up by 4.2 percent, excluding public work earnings, in the month of July. Real wages of public work employees were 2.3 percent higher year-on-year.

These outstanding data are attributable, among other factors, to the economic upturn, public sector wage hikes, the Job Protection Action Plan as well as economic stimulus measures. Family tax allowances, rising gross wages and higher wages in real terms have been substantially contributing to the improvement in households’ financial situation and rebounding domestic demand in turn has underpinned further economic growth. Excellent macro-economic data are pointing to further gains in real wages in Hungary.

Fur detailed KSH data please visit: www.ksh.hu

(Ministry for National Economy)