According to the flash report of the Hungarian Central Statistical Office (KSH) published earlier this morning, in the first month of the year wages in real terms were up by 6.4 percent year-on-year. Thus, wages have been on the rise for more than 3 years and this is the best January growth figure in eleven years.

In the observed period, the number of people in employment -- at enterprises with at least five employees – was 70 thousand higher than one year before.

In January 2016, gross and net wages, which exclude family tax allowances, averaged HUF 249 400 and HUF 165 800, respectively. Thanks to the 1 percentage point reduction of the personal income tax, this accounts for a year-on-year rise of 7.4 percent.

Including the family tax allowance, average net wages are estimated at HUF 173 000 by the KSH.

Excluding the earnings of public work employees, gross wages averaged HUF 264 500 at enterprises, HUF 261 800 at budgetary institutions and HUF 236 800 at non-profit organizations in the month of January.

Within the national economy, wages in real terms -- with and without the effect of the public work system -- were up by 6.4 percent and 7.0 percent, respectively, year-on-year. Wages in real terms – excluding public work earnings -- gained 5.8 percent in the private sector, 10.5 percent in the public sector and 3.1 percent in the non-profit sector.

Thanks to continuous wage hikes, steady low inflation, tax reduction and the recent 5.7 percent hike of minimum wage and guaranteed minimum income, wage growth registered at the beginning of the year surpassed even the favourable increases of previous years.

The fact that wages in real terms have been rising year after year show that Hungarian reforms are working and they are contributing to the expansion of the Hungarian economy.

Fore detailed data please visit www.ksh.hu.

(Ministry for National Economy)