The turnaround has arrived: average gross earnings above HUF 700,000

After months of declining trends, April saw a turnaround in earnings. It seems that companies that had held wage negotiations in the spring tried to implement significant increases despite the difficult economic conditions. Average gross earnings rose by 9.8% year-on-year in April, a substantial jump from the 8.5% seen in the previous month.

Most economists expected the slowdown in earnings growth to continue, but the latest figures show a very different picture.

• The average gross earnings of full-time employees were HUF 708,300.
• Average net earnings reached HUF 486,500, 9.6% higher than in April last year.

Gross earnings rose by 9.9% in the corporate sector and by 8.4% in the public sector, showing that the private sector is leading the way in raising wages.

Adjusted for one-off benefits and bonuses, the wage data show an even faster double-digit increase. The average gross regular salary (excluding bonuses, bonuses and one-month special allowances) is estimated at HUF 657,800, 10.3% higher than in the same period last year.

• Average regular gross earnings amounted to HUF 654,600 in the business sector,
• HUF 656,000 in the budget sector and
• HUF 692,900 in the non-profit sector.

With wage growth accelerating and consumer price inflation slowing in April, the purchasing power of earnings increased substantially. After a 3-4% increase in previous months, the 5.4% expansion is having a positive impact on household incomes, which is also good news for consumption.

Median wages also increased
Median gross earnings were HUF 564,800, 10.2% higher than a year earlier. Median net earnings were HUF 392,700, up 10.2% on the same period last year. (Half of people earn more than the median wage, half earn less, and two-thirds of workers earn less than the average wage.)

Cover photo (for illustration purposes only): Getty Images