news letterOur mobile application

Weekly newsletter

Hungary Gross Wages Climb Annual 9 percent in April

MTI-Hungary Today 2019.06.28.

The average gross monthly wage for full-time workers in Hungary rose by an annual 9.0 percent to 371,131 forints (EUR 1,150) in April, the Central Statistical Office (KSH) said on Friday.

Net wages grew at the same pace, reaching 246,802 forints.

Calculating with twelve-month CPI of 3.9 percent in April, real wages were up by 4.9 percent.

Excluding the 101,900 Hungarians in fostered work programmes, the average gross wage rose by 7.9 percent to 381,749 forints, while net wages grew at the same rate to 253,863 forints.

Excluding fostered workers, the average gross wage in the business sector, which includes state-owned companies, rose by 10.2 percent to 390,243 forints. The average wage in the public sector increased by 0.8 percent to 364,073 forints.

Full-time fostered workers earned gross 82,506 forints in April, 0.4 percent less than a year earlier.

The data sources show that in January-April average gross monthly wage was highest in the finance and insurance sector, at 671,600 forints, and lowest in social health care services, at 234,000 forints.

Men employed full-time earned monthly gross 391,400 forints on average during the period, while women earned 322,900 forints. The rates rose by 11.3 percent and 9.2 percent, respectively, on an annual basis.

Analyst: slower wage grow surprise

Analyst Péter Virovácz of ING Bank said the April single digit wage growth came as somewhat of a surprise, as it was last seen in January 2017. The slower pace of wage increases was certainly tied to lower wage increases in the government sector.

Wages in the private sector still kept growing at a double-digit rate, with the pace above average in the construction and manufacturing sectors and below average in some segments of the services sector. In 2019 wage growth could average around 10 percent in the economy as a whole.

Analyst András Horváth of Takarékbank said wages could grow by a little more than 10 percent this year and real wage growth could be 6.5 percent with chances of it being higher. Wage growth in April was driven by a shortage of skilled labour and the increase of minimum wages for said skilled workers.

Featured photo by 123rf.com