In the initial eight months of the year, wages in real terms increased significantly, by 3.9 percent year-on-year, according to the flash report of the Hungarian Central Statistical Office (KSH) published earlier this morning. Thus, a positive wage growth trend has been in place for the 32nd month in a row. The number of private sector jobs – at enterprises with at least five employees – also grew outstandingly, by 50 thousand, compared to August 2014.

In the period January-August 2015, gross and net wages (excluding family tax allowances) averaged HUF 243 100 and HUF 159 300, respectively, which constitute an increase of 3.7 percent year-on-year, due to unchanged taxation. Taking family tax allowances into account, average net wage was estimated at HUF 166 100.

Excluding the effect of public work schemes, gross wages averaged HUF 260 100 at private sector enterprises, HUF 246 900 at budgetary institutions and HUF 234 500 at non-profit organizations in the initial eight months of the year.

Due to the 0.2 percent fall of consumer prices, wages in real terms grew more than net wages in the period January-August 2015. Accordingly, wages in real terms were up by 3.9 percent within the national economy and by 4 percent excluding the effect of public work schemes. Excluding the effect the public work schemes, wages were up by 3.8 percent in the private sector, 4.3 percent in the public sector and 3.2 percent in the non-profit sector in the period January-August 2015. Meanwhile, the wages of public work employees also increased in real terms by 2.8 year-on-year.

Steady job and wage growth as well as declining prices are improving the financial status of families and thus contribute to domestic consumption growth. Recent excellent macro-economic data are foretelling further wage and employment growth.

For detailed KSH data please visit www.ksh.hu

(Ministry for National Economy)