The average gross wage for full-time workers in Hungary rose by an annual 10.7 percent to 362,595 forints (EUR 1,079) in July, the Central Statistical Office (KSH) said on Monday.
Net wages grew at the same pace, reaching 241,126 forints (EUR 720).
Calculating with twelve-month CPI of 3.3 percent in July, real wages were up by 7.2 percent.
Excluding the 98,400 Hungarians in fostered work programmes, the average gross wage rose by 10.3 percent to 372,613 forints, while net wages grew at the same rate to 247,788 forints.
Excluding fostered workers, the average gross wage in the business sector, which includes state-owned companies, rose by 11.8 percent to 375,801 forints. The average wage in the public sector increased by 6.0 percent to 368,152 forints.
Full-time fostered workers earned gross 81,544 forints in July, 1.5 percent less than a year earlier.
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The data sources show that in January-July average gross monthly wage was highest in finance and insurance sector, at 668,673 forints, and lowest in social and health care services, at 238,444 forints.
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In January-July, gross wages rose by 10.6 percent year-on-year to 359,911 forints and were up by 9.6 percent without fostered workers at 370,314 forints. Excluding fostered workers, business sector gross wages rose 11.3 percent and public sector wages rose 5.2 percent in the period.
Men employed full-time earned gross 393,900 forints on average during the period, while women earned 326,700 forints. The rates rose 11.3 percent and 9.6 percent, respectively, on an annual basis.
Those under 25 years earned a monthly gross average of 276,100 forints on average, and the monthly average was HUF 375,000 for those aged between 25 and 54 years and was at HUF 352,600 for those over 54 years old.
Finance Minister: continuous wage increase for 79 months
Commenting on the data, Finance Minister Mihály Varga said real wages have been increasing for 79 consecutive months, over six and a half years. Wage growth was seven percent in the last year alone, the ministry cited Varga as saying.
Allowed by significant economic growth, tax cuts and wage hikes in the public and private sectors, net wages in Hungary have gone up by 86 percent since 2010, Varga said. The government expects the positive trends to continue, with further wage growth and growing consumption, Varga added.
Analysts expect further intensive wage growth
Analyst András Horváth of Takarékbank told MTI that he expected wage growth to remain intensive in the coming period due to the tight labour market and the record-low level of unemployment.
Péter Virovácz of ING Bank agreed that the average wage growth of 10.6 percent measured in the first seven months of 2019 could continue although downside risks are also increasing with the deterioration of the external economic environment.
Featured photo illustration by Tamás Sóki/MTI