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The average gross wage in Hungary went up by an annual 18.4% to 510,500 forints (EUR 1,270) in October, the Central Statistical Office (KSH) said on Wednesday. The average net wage including tax benefits was 352,000 forints, 19.1% higher than in the same period a year prior. KSH attributed the wage growth mainly to last year’s increase in the minimum wages for skilled and unskilled workers as well as previously scheduled and additional wage hikes.
The average monthly gross wage of full-time employees, excluding Hungarians working full time in fostered work programmes, was 519,800 forints while the average monthly net wage bar the benefits was 339,500 forints in October. The average monthly gross wage of men working full-time went up by an annual 18.1% to 552,500 forints and of women by an annual 16.6% to 457,700 forints.
Average monthly gross wages climbed at the highest rate of an annual 28.5% to 493,800 forints in the non-profit sector. They rose by 16.2% to 445,500 forints in the central-budget operation sector and by 14.3% in the business sector. KSH attributed the above-average wage growth in the non-profit sector to the transfer of several educational institutions to this sector from the central-budget sector. During the period January-October, Hungarians employed in the financial and insurance sectors were the highest earners, receiving on average a monthly gross paycheque of 844,100 forints while people working in commercial accommodations and catering earned the least, 316,700 forints, KSH said.
Commenting on the data, Márton Nagy, the minister of economic development, attributed the continued increase of wages in October to the strong performance of the Hungarian economy. He noted that average wages had increased more than two-and-a-half-fold since 2010 when the government entered into power. Despite the inflationary effect of war-related sanctions on the economy, real wages in the first ten months of 2022 had gone up, by 4.3%, compared with the previous year, the minister said in a statement, adding that the “harmful sanctions” should be scrapped. “The government will do everything in its power to offset the effects of the sanctions and help business survive and strengthen, as well as to ensure that wages continue to increase,” Nagy said. He noted that the government has set up a 2,000 billion forint central fund providing favourable loans and extended the cap on interest rates. The minister also noted the 16% minimum wage increase as of January this year.