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Average Hungarian Takes Home Monthly €533, January Report By Stats Office Shows

Tamás Székely 2016.03.21.

The average gross wage in Hungary rose by 5.8% in January from the same month a year earlier, after growing by 5.7% in December, the Central Statistical Office (KSH) said. January’s gross wage came to 249,395 forints (approx. 802 euros), the KSH said. The average net wage rose faster than gross wages, at 7.4% , due to a one percentage point cut in the personal income tax rate, and stood at 165,849 forints (approx. 533 euros) in January.

ksh

Excluding the 197,000 Hungarians in public work programmes, the average gross wage rose by 6.3% to 262,948, while net wages increased by 8% to 174,861. Full-time public workers earned a gross 79,261 forints on average during the month, 1% less than in the same period a year earlier. Including public workers, about 2,947,200 people were employed in Hungary in January, 3.4% more than a year earlier. Excluding public workers, the number rose by 2.9%.

Analysts told MTI that net wages were likely to grow in excess of 5% in the full year 2016, and economic growth would be driven by household consumption in the coming years. Gergely Suppan of Takarékbank projected full-year gross wage growth of 4.3-4.5% for this year, which could translate into net wage growth of 5.8-6% due to the tax changes. He put real wage growth at 4.6-4.8%, assuming average annual inflation of 1.1%.

Gergely Suppan counted labour shortages in some sectors of the economy and the minimum wage rise among upside risks to wage growth. Lower inflation because of a sustained drop in oil prices could bring real wage growth over 5%, he added. Dávid Németh of K&H Bank said real wages could grow more than 6% this year, boosting household consumption and impacting economic growth.

via ksh.hu and hungarymatters.hu


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