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HUNGARY GROSS WAGES CLIMB 10.6% IN JUNE

 

The average gross wage for full-time workers in Hungary rose by an annual 10.6% to 364,799 forints (EUR 1,100) in June, the Central Statistical Office (KSH) said. Net wages grew at the same pace, reaching 242,591 forints. Calculating with twelve-month CPI of 3.4% in June, real wages were up 7.0%. Excluding the 100,500 Hungarians in fostered work programmes, the average gross wage rose by 9.6% to 375,106 forints, while net wages grew at the same rate to 249,446 forints. Excluding fostered workers, the average gross wage in the business sector, which includes state-owned companies, rose by 10.8% to 378,824 forints. The average wage in the public sector increased by 6.0% to 367,547 forints. Full-time fostered workers earned gross 82,000 forints in June, 0.1% less than a year earlier. In January-June, gross wages rose by an annual 10.6% to 359,464 forints and were up 9.5% without fostered workers at 369,930 forints. Excluding fostered workers, business sector gross wages rose by 11.2% and public sector wages rose by 5.1% in the period.
ING Bank senior analyst Péter Virovácz said the pace of wage growth could be maintained in the second half, but added that the question is when companies would scale back recruitment efforts because of external uncertainties, impacting remuneration. Takarékbank chief analyst András Horváth put full-year wage growth around 10.3%, lifted by the tight labour market and record low unemployment. He added that the gap between wage growth in the public and private sectors could narrow with a rise in healthcare workers’ pay.