Wages in real terms grew year-on-year by 4.2 percent in the period January-November 2015, according to the flash report of the Hungarian Central Statistical Office (KSH) published earlier this morning. Commenting on these data, Minister of State for the Labour Market and Vocational Training Péter Cseresnyés said that thus wages in real terms have been rising for the thirty-fifth consecutive month.
The Minister of State noted that the number of enterprises at private sector enterprises with more than five employees increased by 57 thousand compared to November 2014, and that signals remarkable labour market expansion.
The Minister of State added that along with private sector wage hikes, wage increases in the public sector have also contributed to real wage growth. The Government increases public sector wages in step with Hungary’s economic and fiscal performance. The wages of teachers rose in each year since 2013. Total wage growth was 50 percent on average and the Government has spent HUF 236bn on wages, he pointed out.
In January-November 2015, gross and net wages – excluding family tax allowances – averaged HUF 245 500 and HUF 160 800, respectively, which constitutes year-on-year wage growth of 4.1 percent, thanks to an unmodified tax regime. Including family tax allowances, the KSH estimated average net wage at HUF 167 600. Excluding public work schemes, gross wages averaged HUF 261 500 at private sector enterprises, HUF 253 500 at budgetary institutions and HUF 236 000 at non-profit organizations in the initial eleven months of 2015.
As a result of the 0.1 percent average decrease of consumer prices, the increase of wages in real terms was above net wage growth in the observed period.
Wages in real terms were up by 4.2 percent with and 4.4.percent without the effect of public work schemes. In the period January-November 2015, wages excluding public work schemes rose by 4.0 percent in the private sector, 5.7 percent in the public sector and 2.9 percent in the non-profit sector. Meanwhile, the wage of public work employees also gained 2.2 percent over one year.
Thanks to wage increases in the private and public sectors, continuously low prices and rising minimum wages, wages in real terms are growing steadily in Hungary, and this significantly contributes to Hungarian economic growth.
Excellent incoming retail sales data also show that the financial situation of Hungarian families has been steadily improving.
For detail data please visit www.ksh.hu.
(Ministry for National Economy)
