According to the flash report of the Hungarian Central Statistical Office (KSH), in January-December 2013 average gross and net wages increased by 3.4 percent and 4.9 percent, respectively, in comparison to data compiled one year ago.

Thus, parallel to the steadily subdued inflation -- currently at 1.7 percent -- wages increased in real terms by 3.1 percent last year, excluding the effect of family tax allowances. The latest real wage increase has a positive impact on families’ finances, which translates into domestic consumption growth and, subsequently, into economic expansion. The success of the employment measures of the Government – such as the First Job Guarantee Programme, housing allowance or tenders aiming to boost hiring at SMEs – is being already reflected in statistics: the number of people employed by private sector enterprises with at least 5 employees increased by 34 thousand in one year.

In January-December 2013, the average gross wage of full-time employees was HUF 230 700. Private and public sector employees (excluding public work employees) earned on average HUF 242 200 and HUF 227 800, respectively. In the period January-December 2013, real wages within the national economy edged up by 3.1 percent, excluding family tax allowances.

Taking a look at monthly data  it can be concluded that in December last year the average gross monthly wage of full-time employees was HUF 241 000 within the national economy, down by 1.1 percent year-on-year. Net wage – at HUF 157 900 – was up by 0.4 percent in comparison to December 2012. Excluding the wage impact of the winter phase of the public work programme, gross and net wages improved on average by 1.6 percent and 3.1 percent, respectively, in December. Accordingly, taking into account inflation of 0.4 percent, in the private sector real wages increased further in December.

In light of KSH data, in the month of December the average gross and net monthly wages of private sector employees were up by 0.5 percent and 2.1 percent, respectively, compared to December 2012. The average gross and net monthly wages of those employed at budgetary institutions were – excluding public work employees – 5.9 percent and 7.1 percent higher, year-on-year.

In addition to improving employment, the lower tax burden on wages, the hiking of minimum wages as well as the positive effect of public utility charge cuts are facilitating the stabilization of private households’ finances. All these factors are signs of the success of the Government’s economic policy which aims to reach economic growth of more than 2 percent in 2014.

(Ministry for National Economy)