Despite an expected slowdown, Hungarians actually saw their earnings rise in May by almost 15 percent compared to the same period of the previous year.
The average gross salary for a full-time employee hit 652,000 forints (€1.657), 14.8 percent higher than a year earlier, according to data from the Hungarian Central Statistical Office (KSH). The net average salary reached 433,600 forints.
Last December, the minimum wage increased by 15 percent, and the guaranteed minimum wage increased by 10 percent, with employers having to respond to the massive spike in inflation. Still, the economy has not been strong enough to warrant continued increases on the wage front, and inflation has also been slowing down, so May’s increase was a surprise.
There have also been signs that tightness in the labor market is easing, but wage stats strongly indicate that shortages persist, giving those looking for jobs the upper hand.
The median wage rose even more than the average. The gross median earnings were 525,100 forints, an increase of 16.9 percent versus last year May, while Portfolio reports that the net median was 349,000 forints.
The trend in higher salaries is expected to remain for the rest of the year, and due to the better inflation environment, this should translate into much higher purchasing power for Hungarians. The real wage increase of around 8 percent is one of the biggest increases in recent decades.
