In January 2015, wages in real terms rose markedly, by 5.6 percent within the national economy, according to the flash report of the Hungarian Central Statistical Office (KSH) published this morning.

Data show an uptrend which has been in place for more than two years. The number of employees at enterprises with at least five people on their payroll increased sharply, by 56 thousand in comparison to January 2014. This has been the result of the economic rebound, lower taxes on labour, the Job Protection Action Plan and the Government’s stimulus measures.

Gross and net wages within the national economy averaged HUF 235 900 and HUF 154 500 (excluding family tax allowances), respectively, which – as a consequence of an unmodified tax system -- constitute a year-on-year increase of 4.1 percent. Taking into account family tax allowances, KSH calculations show that net wages averaged HUF 161 500.

Excluding the effect of public work schemes, private, public and non-profit sector employees earned an average gross wage of HUF 251 500, HUF 238 500 and HUF 231 400, respectively, in the observed period.

As a consequence of the 1.4 percent negative inflation rate, wages in real terms rose more than net wages. Thus, wages in real terms were up year-on-year by 5.6 percent within the national economy and by 5 percent, excluding the effect of public work schemes. Without these schemes, wages in real terms gained 4.8 percent in the private sector, 5.2 percent in the public sector and 5.7 percent in the non-profit sector. Concurrently, the wages of public work employees also increased in real terms by 3.5 percent.

Steady job and wage growth as well as lower consumer prices are improving the financial status of families and thus these factors contribute to domestic consumer demand. The latest excellent macroeconomic data and the positive outlook are signalling further gains in the number of jobs and wages in real terms.

For detailed data please visit www.ksh.hu

(Ministry for National Economy)