Wage growth 10.8% in October

BBJ

Gross wage growth in Hungary climbed 10.8% year-on-year in October, the Central Statistical Office (KSH) said on Thursday.  In absolute terms, Hungarians employed full time earned a gross monthly HUF 327,100, while net wages likewise climbed 10.8% to HUF 217,500 during the period. 

Annualized wage growth has been in the double digits since early 2017, after an agreement was reached by employers, unions and the government on big minimum wage increases paired with payroll tax cuts, noted state news agency MTI. 

Real wages were up 6.8% in October, calculating with October CPI of 3.8%. 

Excluding 100,900 Hungarians in fostered work programs, gross wages stood at HUF 337,600 and net wages at HUF 224,500, both up 9.7% from the same month a year earlier.  Fostered workers earned a gross monthly HUF 81,200 on average. 

In January–October 2018, average gross monthly earnings amounted to HUF 324,400, and average net earnings to HUF 215,700, both rising to the same extent, by 11.6% compared to the corresponding period of the previous year. 

An upsurge in labor demand, rises of 8% in the minimum wage and 12% in the guaranteed minimum wage, as well as salary adjustments affecting specific areas of the public sector and the employees of some state-owned public service companies, had an impact on earnings growth, the KSH noted. 

Average monthly gross earnings were the highest in financial and insurance activities (HUF 597,200), and the lowest (HUF 209,900) in accommodation and food service activities. 

Along with the 2.8% rise in consumer prices compared to the first ten months of the previous year, real earnings increased by 8.6% in January–October 2018. 

Earnings data for January–November 2018 will published by the KSH on January 22.