According to the latest statistics of the Hungarian Central Statistical Office (KSH), wages are continuing to rise. In January-August 2013, gross and net average wages within the national economy were 3.4 percent and 4.8 percent higher, respectively, year-on-year. Thanks to Government measures, along with the steady increase of real wages the improving employment trend is also expected to contribute to the stimulation of domestic consumption.

In January-August 2013, the gross average wage of full-time employees was HUF 227 900. The Government has identified as a priority the improvement of families’ financial status, which has been the main reason for the introduction of family tax incentives in 2011. Thus far, the Job Protection Action Plan has helped preserve the jobs of more than 730 thousand people. The Plan aims to assist employers to provide jobs with the most favourable financial conditions possible to the most vulnerable groups of jobseekers on the labour market.

In light of KSH data, in August 2013 the monthly gross average wage of those in full-time jobs was HUF 224 800 within the national economy, which figure exceeds last year’s level by 4.7 percent. Net wage – excluding family tax allowances for children – was HUF 147 275, an increase of 6.2 percent year-on-year. Taking into account an inflation rate of 1.3 percent, wages in real terms were up by 4.8 percent. In the initial eight months of the year, wages increased by 2.6 percent in real terms.

As a result of Government measures -- such as the Job Protection Action Plan or the First Job Guarantee Programme – the number of unemployed people has been steadily under the mark of half a million people and employment is continuously improving. The increasing number of jobs and the concurrent rise of real wages have a positive effect on households’ financial stability. All these factors are signals of a successful Government policy which is anticipated to result in economic growth of 2.0 percent in 2014.

(Ministry for National Economy)