In December 2012, gross average wages in the private sector increased by 8.3 percent, whereas net wages excluding family tax allowances were up by 6.2 percent, beating inflation, in comparison to the corresponding period of the previous year – the Hungarian Central Statistical Office reported earlier this morning.

The gross average wages of those in full-time employment was HUF 243 300 within the national economy in December 2012, which corresponds to an increase of 4.9 percent compared to the same period of the previous year. Net wage – which was HUF 157 100 – increased by 3.1 percent compared to December 2011, which figure, however, does not take into account the positive impact of family tax allowances for children. In the year 2012, both gross and net wages reached their highest level in December. The net wage increase, which was slightly less dynamic compared to the pace of growth in 2011, was primarily a consequence of the larger influence of public employment schemes.

The gross average wage of private sector employees amounted to HUF 260 200 in December, while net wages were HUF 167 700, clocking an increase of 6.2 percent. The gross average monthly wage for full-time employees at budgetary institutions – excluding public work employees – was up by 5.8 percent compared to the corresponding period of the previous year and is currently HUF 210 000.

Employees in the financial and insurance sectors have continued to be top earners, followed by information technology and communication as well as energy industry sectors. Average wages were lowest in the hotel trade and catering sectors.

Moderating inflation, the finalized proportionate flat-rate personal income tax and the minimum wage increase continue to have a favourable impact on wages within the national economy. The reduction of public utility charges at the beginning of the year is expected to have an additional positive effect on the real incomes of families.

(Ministry for National Economy)