In December 2014, wages in real terms were up by 7.7 percent year-on-year, while in the entire year they were 3.2 percent higher, the flash report of the Hungarian Central Statistical Office (KSH) published earlier today reveals. Thus, the upward wage growth trend has been in place for two years now.

Within the private sector – at enterprises with at least five employees – the number of employees increased significantly, by more than 44 thousand, compared to December 2013.

In the year 2014, gross and net wages averaged HUF 237 700 and 155 700, respectively, within the national economy. Private and public sector employees earned on average HUF 252 700 and HUF 209 700, respectively. Excluding public work employees, average gross wage within the national economy was HUF 250 000; within that, private, public and non-profit sector employees earned on average HUF 254 100, HUF 241 200 and HUF 233 400, respectively. As a consequence of flat inflation and the taxation system, real wages gained from every forint of wage hikes. Without family tax allowances, wages in real terms in January-December 2014 edged up by 3.2 percent on average, while excluding public work schemes they were 5.1 percent higher.

With regard to the latter category, the private, public and non-profit sectors recorded wage increases in real terms of 4.7 percent, 6.1 percent and 6.9 percent, respectively. Wages of public work employees were in real terms 1.8 percent higher in the observed period. The expansion of family tax allowances for employees with low and medium incomes resulted in an average real wage increase of 0.8 percent in 2014.

In addition to the robust increase of regular incomes, the other major factor behind the outstanding wage growth in December 2014 was the payment of year-end bonuses.

Excellent GDP data, the steadily improving employment situation and declining prices are indicating further hiring and real wage increases. These positive processes, in turn, are improving the financial status of households and lifting domestic consumption.

For detailed data, please visit www.ksh.hu

(Ministry for National Economy)