Wages in real terms were up by 7.5 percent year-on-year in the period January-May 2016, according to the flash report of the Hungarian Central Statistical Office (KSH). Thus, an upward wage growth trend has been in place for the 21st consecutive month in Hungary. Since May 2015, the number of people employed by enterprises with at least five employees has increased by some 79 thousand, a record high figure.

In the initial five months of 2016, gross and net wages averaged HUF 257 700 and HUF 171 300 (excluding family tax allowance), respectively. Taking into account family tax allowances, net wages are estimated by KSH to have hit HUF 178 500. Excluding public work wages, gross wages in January-May averaged HUF 275 300 at enterprises, HUF 266 000 at budgetary institutions and HUF 245 200 at non-profit organizations. In the observed period, these figures corresponded to increases of 6.8 percent in the private sector, 12.1 percent in the public sector and 7.7 percent in the non-profit sector.

Wages hikes in the private and public sectors, low inflation, tax reductions and the Job Protection Action Plan have been instrumental in boosting the incomes of families. Steadily rising real wages show that Hungarian reforms are working.

(Ministry for National Economy)