Real wages continued to increase despite the pandemic, according to the Ministry of Technology and Industry. Analysts say the full-year wage growth can climb a little over 16%.
The average gross wage has climbed 14.9% year-on-year to 495,900 forints (1,250 euros) in Hungary in May, according to the Central Statistical Office (KSH). For full-time employees at companies which have least five people on the payroll, the average net wage has risen to 329,700 forints. The gross median wage increased by 14.5% to 397,900 forints, KSH stated on Monday. The real wage growth was 3.8%, calculating with the May CPI of 10.7%.
According to a statement by the Ministry of Technology and Industry (TIM), real wages carried on increasing despite the pandemic, the war in Ukraine, and the associated economic and inflation woes, making their upward course unbroken for 113 months. The ministry added that the purchasing power was protected by the price caps (on fuel and basic staple food items) and the maintenance of caps on household energy bills, the ministry said.
András Horváth, chief analyst at Magyar Bankholding told Hungarian news agency MTI that the full-year wage growth can climb a little over 16%. According to K&H Bank senior analyst Dávid Németh, the wage growth can fall behind inflation in case businesses do not raise pay in the second half of 2022.
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