As a result of a drastic minimal wage hike, gross wages in the Hungarian economy rose sharply by 10% year on year in January 2017, the Central Statistical Office (KSH) reported on Monday. At the same time, due to accelerating inflation, net wages were up by “only" 7.5% at real value.
The minimum wage was raised by 15% and the minimum wage for skilled workers was taken 25% higher in January, which is reflected in the earnings data for the first month of 2017 too.
Gross wages in the national economy rose 10% and ex-bonus wages jumped 10.3% yr/yr. Consumer prices were up 2.3% yr/yr in January, which means net real wage was up 7.5%.
Gross wages at businesses employing at least five persons rose 9.1% on average compared to January 2016, while ex-bonus wages increased by 9.4%. Net wages at real value were up 6.6%.
Jump in business sector employment
The number of people employed in the business sector grew sharply by 65,000 between end-December and 31 January, which is the greatest increase of the last decade. The rise put the number of employed in the sector to over two million. There was no meaningful growth in the number of employed in the business sector in the second half of 2016, but the January print suggests the upturn has not been halted yet by a shortage of labour.
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