November average gross earnings stood at HUF 621,000

• The average gross earnings of full-time employees were HUF 621,200 in November, 14.1% higher than a year earlier.
• Average net earnings were HUF 413,100 without benefits and HUF 427,700 including benefits, 14.1% and 14.0% higher respectively than in November 2022.
• The median gross earnings reached HUF 489,400 and the median net earnings HUF 338,500, 16.0% and 15.3% higher than in the same period last year (half of the people earn less than the median wage, the other half earn more).

  

Bonuses gave a significant boost to earnings towards the end of the year. This is indicated by the fact that the level of regular earnings is substantially lower than this.

• The average gross regular salary (excluding premiums, bonuses, and one-month special allowances) is estimated at HUF 548,600, 14.3% higher than in the same period last year.
• Average regular gross earnings amounted to HUF 547,500 in the business sector, HUF 539,100 in the budget, and HUF 587,200 in the non-profit sector, up by 14.2%, 13.7%, and 17.3% respectively over a year.

With inflation having eased by November, real wages have already increased substantially on an annual basis. The first eight months of the year saw a sharp fall in the real value of workers' earnings, but the final months of the year saw an increase compared to the same period last year. Wage growth has been in the range of 14-16% throughout the year, while inflation has fallen from above 25% at the beginning of the year to below 8% in November. The latter is the reason why real wages have now risen sharply by 5.7%, after a significant fall in the first half of the year.

Wage developments are also in line with retail statistics. Although the year-on-year decline in the retail sector is getting smaller, there is no sign of a significant rebound compared to previous months. As soon as wages start to rise again, which typically takes place in January or March/April, retail sales should improve. Exceptionally, the minimum wage and the wage floor have now risen not in January but a month earlier, in December last year. The former and the latter by 15% and 10% respectively, which should maintain the strong wage dynamics in the economy. (However, as December wages are paid in January, the main pick-up in consumption will be seen in the first months of the year, rather than over the Christmas period.) Analysts expect (nominal) earnings to rise by over 10% in 2024, which should also boost real wages. With inflation most recently forecast to be between 4% and 6% this year, there could be meaningful real wage growth.

In the first 11 months of last year,

• the average gross earnings of full-time employees were HUF 563,500.
• The average net salary was HUF 374,800 without benefits and HUF 388,500 including benefits.
• Gross average net earnings excluding benefits and net earnings including benefits both increased by 14% compared to the same period last year.

Cover photo Getty Images