The larger tax break is already visible in Hungarian earnings

In July, the average gross earnings of full-time employees were HUF 693,700, which was 9% higher than a year earlier. Meanwhile, average net earnings reached HUF 479,500 — a 9.4% increase on July 2024.

The increase in net average earnings exceeded the growth of the gross average earnings due to the higher amount of family tax benefit introduced on 1 July 2025,

the Central Statistical Office (KSH) commented on Tuesday. Remember that the amount of family tax benefit has increased by 50% since July.

• Median gross earnings were HUF 570,000, being 9.6% above the level a year earlier.

• Median net earnings reached HUF 399,000, which is 10.7% higher than in the same period last year.

Although growth in gross average earnings slowed slightly compared to the previous month, net earnings remained high thanks to the tax credit. This could have a positive impact on consumption in the coming months.

Compared to the same period last year, real earnings rose by 4.9%, while consumer prices increased by 4.3%.

Regular average gross earnings (excluding premiums and one-month bonuses) were estimated at HUF 656,600, which is 8.5% higher than in the same period last year. Regular average gross earnings amounted to HUF 649,900 in the business sector, HUF 669,900 in the budgetary sector, and HUF 684,400 in the non-profit sector, representing increases of 8.1%, 10.1%, and 7.9% respectively over the previous year.

Over the next few months, earnings growth is expected to remain within the 8% to 10% range overall. The key question is how much wages will increase in 2026. Despite the difficult economic situation, the current wage agreement states that a 13% increase in the minimum wage could push up other wages. However, companies would like to renegotiate the agreement precisely because of the weaker economy, and are no longer considering double-digit increases in the minimum wage or other wages.

Cover image (for illustration purposes only): Getty Images