Hungarians now earn an average gross HUF 642,000

Gross earnings growth slowed in June. According to the latest data from the Hungarian Central Statistical Office (KSH), the average gross earnings of full-time employees were HUF 642,000, 13.3% higher than a year earlier. Net average earnings excluding discounts reached HUF 427,000, 13.3 % higher than in June 2023. The previous month saw an increase of close to 15%, so the current figure represents an apparent decline.

If we look at the graph below, we can also see that the slowdown in the growth rate is trend-like, but the rise of well over 10% is still historically high.

Growth continued to moderate in the business sector, while the rapid rise in the public sector was sustained. In the corporate sector, it is clear that the rate of wage growth has fallen from close to 15% over the last six months to 11.4%.

In the public sector, we continue to see growth of over 18%, with the start of the catching-up of teachers' salaries this year playing a major role.

Real wage growth has slowed on average across the country. After a 10% increase in recent months, we have now seen real wage growth of 9.3%, although inflation has helped to support the high level of purchasing power growth in earnings this month (down from 4% in May to 3.7%). However, the pace of monetary deflation may be slightly higher in the coming months, which will already reduce the rate of real wage growth.

The slowdown in real wage growth is particularly spectacular in the competitive sector. Here, the growth in purchasing power of wages is now only close to 7%, while in the public sector it is above 14%.

Portfolio calculates that real earnings are now 20% above 2020 levels, while minimum wages have increased by more than 70%.

Median wage up by 15%
Median gross earnings were HUF 518,800, 15.3% higher than a year earlier. Median net earnings after discounts were HUF 359,200, 15.1% higher than in the same period a year earlier. Median earnings are the amount at which half of workers earn less and half earn more. Two-thirds of workers earn less than the average wage.

• Average gross regular earnings (excluding bonuses, premiums and one-month special allowances) are estimated at HUF 598,200 in June, 13.9% more than in the same period last year.
• The average regular gross salary was HUF 595,000 in the business sector,
• HUF 597,800 in the budget sector
• and HUF 631,300 in the non-profit sector.

In the first half of this year,

• the average gross earnings of full-time employees were HUF 634,800.
• Average net earnings excluding bonuses reached HUF 422,100, and HUF 436,900 including bonuses.
• Both gross and net average earnings excluding discounts increased by 14%, while net earnings including discounts increased by 13.8% compared to the same period last year.

Cover photo (for illustration purposes only): Getty Images