Most Hungarians would need a net monthly salary of 350,000-450,000 forints to cover increased everyday costs.Continue reading
According to data from the Central Statistics Office, the average gross salary in Hungary was HUF 515,800 (EUR 1,355) in 2022, with only the Czech Republic earning a higher average amounting to HUF 628,000 (EUR 1,650). The data also showed that despite high inflation, Hungary managed to maintain real wage growth, reported Hungarian economic site Világgazdaság.
Although the December statistics painted a somewhat gloomy picture, Hungarian wages performed well for the whole of 2022. Hungarian wages have successfully continued to catch up with those in the region, while at the same time, among the Visegrad Four countries (Hungary, Czechia, Poland, and Slovakia), only Hungary saw an increase in purchasing power last year.
For the year as a whole, real wages rose by 2.6 percent, with consumer prices up 14.5 percent compared to the previous year.
The rise in real wages might not amount to much at first glance, but is still unique in the region. Real wages in the Czech Republic fell by around 9 percent last year, and in Poland real wages fell for the first time since 2008. In Slovakia, real wages had fallen by 3.4 percent by the end of September.
According to the Central Statistics Office, the average gross earnings of full-time employees in January-December 2022 were 515,800 forints (EUR 1,355), while the average net earnings were 343,000 forints (EUR 900) without reductions, and 355,300 forints (EUR 933) including reductions.
Both gross and net average earnings excluding reductions increased by 17.5 percent, and net earnings including reductions by 18.2 percent compared to the previous year. The significant increase is mainly explained by the front-loaded and additional wage increases in some promotion schemes, as well as the increase in the minimum wage and guaranteed minimum wage implemented in 2022.
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