In the initial seven months of 2016, wages in real terms were significantly higher year-on-year, having gained 7.4 percent. Thus, the upward wage growth trend has been unbroken for more than three years and a half in Hungary. Within the private sector -- at enterprises with at least five employees -- the number of people in employment rose by 65 thousand since July 2015.

In the initial seven months of 2016, gross and net wages (excluding family tax allowances) averaged HUF 257 900 and HUF 171 500, respectively, within the national economy. Taking into account family tax allowances, the Hungarian Central Statistical Office (KSH) estimates that net wages averaged HUF 178 600 in the observed period. Excluding the effect of public work schemes, in the period January-July 2016 the average gross wage was HUF 274 800 in the private sector, HUF 269 100 in the public sector and HUF 247 200 in the non-profit sector, which corresponds to increases of 6.7 percent, 11.6 percent and 6.9 percent, respectively.

Steady wage hikes, a favourable inflationary environment and rising minimum wages have maintained a wage growth trend for 43 months. Incoming macro-economic data signal that wages may rise even further.

(Ministry for National Economy)