Economy 21 December 2023, 9:22am

Median net income in Hungary stands at HUF 318,000

Portfolio

In October 2023, the average gross earnings of full-time employees were HUF 564,400, while the average net earnings after taking into account discounts were HUF 389,300. Both gross and net average earnings increased by 14.0% over a year. As inflation has been falling steadily, this annual dynamic is now sufficient for real earnings to exceed the year-on-year increase: 3.7% for the economy as a whole and 4.1% for the private sector.

The average gross earnings of full-time employees were HUF 564,400, 14.0% higher than a year earlier. The average gross regular earnings (excluding bonuses, allowances, and one-month special benefits) were estimated at HUF 540,200, 14.5% higher than a year earlier. In both cases, there is a slight decrease in annual growth.

Average net earnings were HUF 375,300 excluding benefits and HUF 389,300 including benefits, both 14.0% higher than in October 2022. Real earnings rose by 3.7%, with consumer prices up 9.9% year-on-year.

Real wage changes in the Hungarian economy

It is also worth observing real wage developments on a level, fixed basis. This shows that the very low monthly inflation in recent months and the small month-to-month variation in average wages over the year have resulted in an overall stagnant real wage path. However, October is already pointing to an upturn on a short basis and can be seen as a turning point, but Portfolio expects a genuine acceleration only early next year.

Changes in net avg and net real earnings

Median gross earnings (the median, i.e. the earnings at which half of the employed earn more and half earn less) were HUF 456,300, 14.4% higher than a year earlier. Median net earnings including benefits reached HUF 318,300, up 15.3% on the same period last year.

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