In the final quarter of 2023, Hungary navigated a landscape of modest growth and stagnation.Continue reading
In December 2023, the Central Statistical Office (KSH) reported that the average gross earnings of full-time employees were HUF 655,600 (EUR 1,686), with net earnings averaging HUF 451,300 (EUR 1,161) after taxation. Gross wages increased by 16.4 percent, and net earnings grew by a 16.3 percent compared to the previous year.
Real wages also saw a significant rise of 10.3 percent.
In 2023, average gross earnings stood at HUF 571,200 (EUR 1,469), while net earnings, factoring in discounts, amounted to HUF 393,700 (EUR 1,013). December 2023, saw a notable 10.3 percent increase in real earnings, attributed to effective government measures that curbed inflation to 5.5 percent by year-end and 3.8 percent in January.
Sándor Czomba, Secretary of State for Employment Policy, highlighted the positive impact on families’ incomes,
noting the increased purchasing power following September’s real wage turnaround. He attributed this to the government’s actions, including a 15 percent hike in the minimum wage and a 10 percent increase in the guaranteed minimum wage.
Changes in gross, average, and real wages. Picture: KSH
Mr. Czomba emphasized the substantial improvement compared to past administrations, pointing out that the average worker now earns over three times the average salary. Additionally, there are one million more people employed than in 2010, while the number of registered job seekers is at an all-time low.
The Ministry of National Economy echoed these sentiments, noting that the dynamic growth in real wages is driving increased consumption and economic growth, with expectations of around four percent GDP growth.
Via MTI; Featured Image: Pixabay