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Wages Increased By Annual 5.4% In August As Salary Uptrend Continues In Hungary

Tamás Székely 2015.10.20.

The average gross wage in Hungary was 241,680 forints (EUR 779.22) in August, up by 5.4% from the same month a year earlier, the Central Statistical Office (KSH) reported. While the average net wage rose at the same pace to 158,300 forints during the period, real wages also climbed at the same clip as consumer prices were flat for the month. Excluding the 211,700 Hungarians in public work programmes, the average gross wage rose by 5.9% to 255,805 forints, while net wages increased at the same rate to 167,555 forints. Full-time public workers earned gross 79,465 forints on average during the month.

source: ksh.hu

source: ksh.hu

Analysts polled by MTI forecast an annual 3-4% wage hike for 2015. They added that real wages could increase by the same rate, in light of a practically zero level of inflation. Gergely Suppán of Takarékbank said that wages could increase by a gross 4% in 2016, resulting in a net increase of 5.5% due to changes in taxation. With inflation seen at 2.3% next year, net real wages could increase by over 3%, he said. K and H senior analyst Dávid Németh said a labour shortage in several sectors such as retail trade could put pressure on employers to increase wages at the beginning of 2016.

The economy ministry noted an uninterrupted increase in real wages during the past 32 months, and said that private companies with 5 or more employees increased their staff by 50,000 in August compared to the same month in 2014. Steady job and wage growth as well as declining prices are improving the financial status of families and thus contribute to domestic consumption growth, the Ministry said in response to KSH data, adding that the “recent excellent macro-economic data are foretelling further wage and employment growth.”

via ksh.hu, hungarymatters.hu and kormany.hu