In the initial two months of the year, wages in real terms grew outstandingly, by 5 percent, within the national economy – according to the flash report of the Hungarian Central Statistical Office (KSH) published earlier this morning.

Thus, the positive wage growth trend has been in place for two years now in Hungary. Within the private sector, in comparison to February 2014, the number of people with a job was up by 66 thousand at enterprises with at least five employees.

Within the national economy, gross and net wages averaged HUF 235 100 and HUF 154 000 (excluding family tax allowances), respectively, in the period January-February 2015, constituting year-on-year growth of 3.7 percent due to an unchanged tax structure. Including the effect of family tax allowances, the KSH estimates that net wages averaged HUF 160 700.

Excluding the effect of public work schemes, the average gross wage was HUF 250 800 at enterprises, HUF 236 900 at budgetary institutions and HUF 228 600 at non-profit organizations.

As a result of the 1.2 percent average drop in consumer prices, wage growth in real terms exceeded the net wage increase. Thus, wages in real terms were 5.0 percent within the national economy and they increased by 4.3 percent excluding the effect of public work schemes. In the period January-February 2015, wages in real terms -- excluding public work -- increased by 4.6 percent in the private sector, by 3.4 percent in the public sector and by 3.7 percent in the non-profit sector. Concurrently, wages of public work employees was 2.8 percent higher year-on-year.

Private sector wage hikes, declining prices as well as Government measures such as public sector wage hikes, lowering taxes on labour, the Job Protection Action Plan and economic activity stimulus measures have been driving wages higher.

For detailed data please visit:   www.ksh.hu

(Ministry for National Economy)