There seems to be a pay divide in Hungary with serious consequences

Wages continued to rise in Hungary in the first quarter of 2025, but at a markedly slower pace.

 Compared to the same period last year, the average gross earnings of full-time employees rose by 9.2%, while net earnings rose by 9.1%. Average gross earnings reached HUF 680,400, while average net earnings reached HUF 467,600.

 However, two thirds of workers earn less than this, meaning the average is skewed by the high-income minority.

Income inequalities are persistent, and there are several indications that they are widening.

The earnings quintiles, or income quintiles, show that wage growth is unevenly distributed across different social groups.

According to the data, the 20% with the lowest earnings (the first quintile) earned an average gross monthly salary of HUF 293,100, representing an annual increase of 8.1%.

This group was hit particularly hard by the minimum wage increase introduced in January 2025. Minimum earnings increased by 9%, while the guaranteed wage minimum went up by 7%.

This primarily impacts workers in low-skilled occupations, with the rate of minimum wage increases lagging behind the national average.

The second quintile — the lower middle class — took home HUF 406,400 per month, an increase of 8.9%. The raise to the minimum wage has also impacted this group, but the number of workers with some skill but still moderate bargaining power in the labour market is growing. The wage hikes seen at the beginning of the year may still be a reflection of the ongoing shortage of skilled workers in certain sectors.

Those in the middle income bracket (i.e. the third quintile) had a gross monthly income of HUF 541,900, which corresponded to a 9.3% yr/yr growth. This quintile typically comprises experienced, skilled employees and office workers with lower responsibilities. These workers tend to be less exposed to changes in wage minima and are more likely to receive pay rises due to labour shortages or internal company wage pressures. Furthermore, this group is already impacted by numerous public wage increase programmes.

Median wage earners fall into this income quintile, which equates to around HUF 550,000. At this level, half of workers earn more and half earn less.

The fourth quintile — the upper middle class — experienced the biggest annual earnings growth of 10.2% in this period.

The average gross monthly wage in this group was HUF 722,300.

There are several factors that can be attributed to the faster wage growth here. On the one hand, competition for skilled labour remains strong. On the other hand, middle managers and senior professionals in the corporate sector fall into this category.

This category also includes the average gross wage, which is HUF 680,000. This indicates that roughly two-thirds of people earn well below the average.

The average monthly earnings of the top quintile are now HUF 1,430,500, which marks an increase of only 9.1%. However, this is still far higher than the earnings of the other strata in absolute terms. This rate of increase is in line with the average rate of growth in the national economy, which may be surprising given the weakening economy and companies cutting wages for the highest earners.

Overall, wage growth has continued, albeit at a slower pace. It remained above 10% last year, and this trend affects all income levels.

The widening gap is particularly noteworthy: while state intervention (minimum wages) has driven wage growth in the bottom quintile, market movements and position-linked bonuses are key for the top quintile.

Thus, inequality has not changed substantially, and relative disparities appear to be maintained. The lower-middle classes continue to struggle to catch up, while those in the upper-middle and top income groups are stabilising and even increasing their advantage.

Cover image (for illustration purposes only): Getty Images