The flash report of the Hungarian Central Statistical Office (KSH) published earlier today shows that in the initial three months of the year wages in real terms were up by 5.2 percent year-on-year within the national economy. Thus, wages in real terms have been on the rise for the twenty-seventh month, while the number of jobs at private sector enterprises with at least five employees increased by 59 thousand compared to March 2014.

Gross and net wages within the national economy averaged HUF 239 300 and HUF 156 700 (excluding the effect of family tax allowances), respectively, in the period January-March 2015, which constitutes growth of 4.1 percent as a consequence of an unmodified tax system. Taking into account family tax allowances, the KSH estimates that net wages averaged HUF 163 600. Excluding the effect of public work schemes, average gross wage in the first quarter was HUF 256 400 in the private sector, HUF 237 100 at budgetary institutions and HUF 229 300 at non-profit organizations.

As a result of the 1 percent average decline of consumer prices, the growth of wages in real terms was higher than net wage growth. Thus, wages in real terms were up by 5.2 percent within the national economy, while excluding the effect of public work schemes they were 4 percent higher in the first quarter of 2015. Excluding the effect of public work schemes, wages in real terms edged up by 4.3 percent in the private sector, and by 3.3 percent each in the public sector and in the non-profit sector in the period January-March. The average wage of public work employees was also higher by 3.1 percent year-on-year.

Steady job and wage growth is having a positive impact on households’ financial status and on consumption growth. Economic expansion, the Job Protection Action Plan and stimulus measures have all contributed to the steady increase of wages in real terms.

For detailed KSH data please visit www.ksh.hu.

(Ministry for National Economy)