Net earnings have increased by 51 percent over the past six years in Hungary, it has been revealed.
According to official figures, earnings in real terms grew by 32 percent. Real earnings have also been rising steadily for 65 months thanks to public sector wage hikes, rising labor demand in the private sector and the six-year wage agreement.
According to kormany.hu, wage growth will be underpinned by the 2019 Budget due to the fact that the rate of social contribution tax is set to be reduced from 19.5 percent to 17.5 percent and this will leave more room for enterprises to raise wages.
Public sector wage increases are to continue. Wages in law enforcement, defense and healthcare sectors will rise further this year and next.
In the period January-May 2018, gross and net wages averaged 323 000 and 215 000 HUF, respectively. Net wages including family tax allowances averaged 226 000 HUF in the month of May. This equates to gross and net earnings growth of 12.1 percent each, while real earnings were up by 9.7 percent year-on-year.
What’s more, the government continues to aim for full employment and help employees increasingly benefit from the country’s economic growth.
Rising wages and the rising number of people in employment are also contributing to the expansion of the Hungarian economy while they also help maintain fiscal balance.