According to the Central Statistical Office (KSH), net income including allowances increased by 10.9 percent in July compared to the same period last year. Analysts say real wage growth could end up at an unprecedented 6.5 percent this year.
The monthly average gross wages of full-time employees was HUF 362,600, excluding public employees HUF 372,600. The average net wage without allowances stood at HUF 241,100, and with allowances HUF 248,600.
Men’s wages grew faster, while the average gross income for men in full-time employment was HUF 393,900, it reached HUF 326,700 for women. This means an increase of 11.3 percent for men and 9.6 percent for women over a year.
The average gross salary stood at HUF 276,100 for the under-25s, HUF 375,000 for the 25-54 year-olds and 352,600 for the over-54s. The average wage growth in each corresponding age group was 16.9 percent, 10.9 percent, and 10.2 percent compared to the same period in the previous year.
Since 2010, net income has doubled due to family tax relief, and real wages have been rising in Hungary for more than six-and-a-half years, said Mihály Varga, Minister of Finance.
The government is constantly committed to raising the income of Hungarian families and providing them with financial security. Real wages for families with two children increased by nearly 59 percent between 2010 and 2018, while those with three children increased by 76 percent, compared to the previous government where family allowances did not exist. In a family with three children, where both parents have been earning, net income has doubled due to family tax relief.
The Minister also said that net wages have increased by 86 percent since 2010, mainly due to tax cuts, the private sector, public sector wage increases and strong economic growth.
Mihály Varga emphasized that the wage agreement, initiated by the government, which includes a significant increase in the minimum wage and the guaranteed minimum wage, as well as a significant reduction in the tax burden on the employer, contributes to increasing the number of high value-added jobs. On the basis of the performance and outlook of the Hungarian economy in recent years, the government expects continued wage growth and, at the same time, a further increase in consumption.