According to the flash report of the Hungarian Central Statistical Office (KSH), the strengthening of wages’ purchasing power continued unabated in the fourth month of the year.

In light of statistics, the average gross monthly wage of full-time employees was HUF 230 004 in April 2013, which corresponds to an increase of 4.5 percent compared to the corresponding period of the previous year. Net wage – at HUF 150 653 – was 5.9 percent higher compared to April 2012, but this figure does not take into account the effect of family tax allowances for children. Calculating with an inflation rate of 1.7 percent in April, real wages increased by more than 4 percent in April.

In April, average gross and net monthly wage in the private sector was up by 5.5 percent and 7 percent, respectively, compared to the same period of the previous year. The average gross monthly wage of those working full-time at budgetary institutions – excluding public work employees – increased by 4.5 percent compared to April 2012, while net wages registered growth of 5.4 percent.

The latest data compiled by KSH show that in January-April 2013 average gross wages within the national economy were up by 3.4 percent, while net wages excluding family tax allowances were 4.7 percent higher compared to figures recorded one year ago. In the initial four months of the year, the average gross wage of full-time employees was HUF 226 736 within the national economy. The wages of employees averaged HUF 237 862 and HUF 213 081 in the private and the public sector (excluding public work employees), respectively. Public work employees earned HUF 78 300 on average.

Average net wages in the private sector and at budgetary institutions (without public work employees) were up by 4.7 percent and 4.5 percent, respectively, in comparison to the same period of 2012. In January-April 2013, the purchasing power of wages increased in both sectors, and within the national economy real wage increase was 2 percent, calculated with an inflation rate of 2.6 percent which was registered in January-April 2013.

On the basis of the latest KSH statistics, the auspicious trend, in place since January, when real wages are increasing in a benign inflationary environment, has been persisting. Real wage growth may be a key driving force behind improving household consumption.

(Ministry for National Economy)