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Hungarian wages rise by 11.2 percent year-on-year in June

Hungarian net wages rose by 11.2 percent year-on-year in June due to a better economic performance, Finance Minister Mihály Varga said.

editor: REMIX NEWS
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The finance minister has revealed that Hungarian net wages rose by 11.2 percent year-on-year in June due to a better economic performance.

Data from the Central Statistics Office (KSH) shows that after a 10.9 percent increase in May, the year-on-year growth in June was 11.2 percent and 11.9 percent in the first half of the year. This means that the average net wage in June was HUF 219,200 (US$784) or HUF 227,700 after tax rebates for families.

“This (increase) indicates that wages continue to catch up and this is also helped by the reduced duties included in the (national) wage agreement and the changes in taxation,” Minister Varga told national television channel M1.

The minister expects wages to continue their dynamic increase in the coming months. Minister Varga also said that it was especially good that the regional wage gap was diminishing, as incomes rose the most in the trailing counties.

In a per sector view, the highest wage rises were in public administration, construction, tourism and healthcare. Minister Varga said this was of particular importance because it meant that workforce resupply in these sectors will be assured.

KSH data also showed that the number of full-time employees in the private sector rose by 98,000, in the public sector by 11,000 while the number of employees in the government’s public employment scheme fell by 38,000 to 131,000.

The wage rise was also fuelled by an 8 and 12 percent increase in minimum wages for unskilled and skilled labor, respectively.