Economy 16 July 2025, 10:05am

Hungarian earnings have stepped firmly on the brake pedal

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Average gross earnings in Hungary rose by just 7.8% in May. The last time such a slow rise was seen was in 2021.

Over the past year and a half, the rate of earnings growth in Hungary has been slowing almost continuously. In May, the year-on-year increase was only 7.8%, a significant slowdown from 9.8% in April.

The last time the wage growth rate was temporarily even slower than this was in 2021, excluding the one-off distorting effect of the firearms money.

The average gross earnings of full-time employees were HUF 702,800.
Average net earnings reached HUF 483,000.

However, two thirds of employees earn less than the average wage. The median wage, which half of workers earn more than and half less than, was

HUF 562,300 gross, 7.9% higher than a year earlier.
Median net earnings reached HUF 391,200, up 8.2% on the same period a year earlier.

The slowdown is also being felt in the corporate sector. Here, wages rose by 7.4% compared to May last year, while in April the wage dynamics in companies were still close to 10%.

Average gross wages in firms rose to HUF 711,000, while net wages were HUF 489,000.

In the public sector, wages increased by 9%, with the gross average at HUF 670,000.

It is worth noting, however, that just last May there was a small uptick in wage dynamics (higher base), so the slowdown should be interpreted in this context. Regular earnings developments are a good reference for this.

The average gross regular earnings (excluding bonuses, bonuses, one-month special allowances) were HUF 660,000, 8.6% higher than in the same period last year. The slowdown in the growth rate is therefore smaller here than for total gross.

Average regular gross earnings amounted to HUF 657,700 in the business sector, HUF 656,400 in the public sector and HUF 691,800 in the non-profit sector, up by 8.1%, 9.8% and 9.1% respectively over a year.

Given the slowing wage dynamics, it is not surprising that real earnings growth is also lower than before. Real earnings have risen by 3.2%, consistent with the fact that consumption growth has also been notably slow.