The average gross salary in a national industry in Hungary has exceeded HUF 1 million (EUR 2,681) for two consecutive months, a record never seen before. In most Hungarian professions, this is still a dream, but by the end of the decade it could become generalized, reports Világgazdaság.
For months, salaries have been struggling to keep pace with inflation. The turnaround is still some way off (it could happen in August-September), but wage growth is still very impressive.
Regular earnings have been growing steadily since the beginning of the year, at a rate between 16 and 17 percent, barely slowing down compared to last year, with average gross earnings rising to HUF 568,000 (EUR 1,523) in April, up HUF 76,000 (EUR 204) from a year earlier.
In the financial sector, salaries have crossed the 1 million forint mark for two consecutive months this year: in March average gross monthly earnings were HUF 1,032,000 (EUR 2,767) and in April HUF 1,052,000 (EUR 2,820).
Information and communication remains in second place, with an average gross salary of HUF 938,000 (EUR 2,515). Wages in these two sectors were already approaching the one million mark in December last year, but even with year-end bonuses, they were not there, however in April the usual bonuses in the sector at the time were able to pull wages up.
According to the central bank, there is still no sign of a price-wage spiral, but it seems that inflation is pushing up wages in all sectors, with the Central Statistics Office recording dynamics of over 14% in three quarters of sectors. Earnings were above the national average in April in
- the health sector,
- scientific and technical activities,
- public administration and defense.
There is only one area in the whole list where wages rose above the 24% inflation rate in April, and that is mining (26% increase).
Construction with HUF 422,000 (EUR 1,132) and accommodation and food services with HUF 366,000 (EUR 981) continue to be at the bottom of the list.
However, we still have to wait for the average salary in the whole economy to reach HUF 1 million (EUR 2,681) in Hungary. Even if wages do not grow at the same pace this year and in the coming years as they did last year or the year before, the 7-9% wage dynamic could be sustained in the medium term. It is expected to push average gross wages above the one million mark by 2030. It is also true, however, and can be stated with certainty, that this amount will be worth much less than it is today.
Via Világgazdaság, Featured image via Pixabay