Gross wages came to 398,800 forints (EUR 1,160) in May, 9.4 percent higher than a year earlier, the Central Statistical Office (KSH) said on Friday.
In the first five months of the year, gross wages were 390,000 forints while and net wages excluding in-kind benefits were 259,300, both 8.8 percent up from the same period of the previous year.
Private-sector wages came to 409,800 in May, with net earnings increasing by 9.4 percent to 265,200 forints.
In January-May, real wages rose by 5.1 percent, calculating with annual CPI of 3.5 percent.
The average gross wage in the business sector, which includes state-owned companies, rose 10.0pc to HUF 416,400.
The average gross wage in the public sector climbed 10.1 percent to HUF 368,100.
ING Bank senior analyst Péter Virovácz said wage rises at the start of the year, as well as a statutory increase in the minimum wage, appear to be countering the impact of the coronavirus crisis. A declining inclination to make new hires and high unemployment will weaken employees’ wage negotiating position in the second half of the year, causing wage growth to slow, but wages could still rise an average 7-8 percent for the full year, he added.
Featured photo illustration by Tibor Rosta/MTI
