In the first eight months of 2016, wages in real terms increased by 7.5 percent year-on-year, according to the flash report of the Hungarian Central Statistical Office (KSH), This shows that an upward wage trend has been in place for the 44th consecutive month. Within the private sector, the number of jobs soared by 65 thousand since August 2015.

In January-August 2016, gross and net wages averaged HUF 257 900 and HUF 171 500 (excluding family tax allowance), respectively.  Taking into account family tax allowances, the net wage was estimated at HUF 178 700.  Excluding the effect of public work schemes, in the observed period gross wages averaged HUF 274 100 in the private sector, HUF 271 100 in the public sector and HUF 248 200 in the non-profit sector.

This corresponds to real wage increases – with and without the effect of public work wages -- of 7.5 percent and 8 percent, respectively.

Accordingly, excluding the public work scheme, wages rose by 6.8 percent at enterprises, 11.4 percent at budgetary institutions and 7.4 percent at non-profit organizations.

These increases were the result of private and public sector wage hikes, low inflation, tax cuts and rising minimum wages.

Favourable economic processes are signalling further real wage and job growth in Hungary.

(Ministry for National Economy)