In the month of September, wages in real terms increased by 4.9 percent in comparison to September 2012, and thus the purchasing power of wages have been on the rise for the ninth month in a row, an indicator of the success of the Government’s economic policy.

According to the report by the Hungarian Central Statistical Office (KSH), in January-September 2013 average gross and net wages were up by 3.6 percent and 5 percent, respectively, within the national economy, compared to data of one year ago.

Consequently, in the initial three quarters of the year a real wage increase of 2.8 percent could be achieved parallel to benign inflation of 2.1 percent. Favourable data are expected to exert a positive effect on economic growth, as increasing real wages will lead to higher consumption.

In January-September 2013, the average gross wage of full-time employees was HUF 227 500. Within that, private sector employees earned on average HUF 238 100, while public sector employees – excluding public work employees – received HUF 223 000. Within the national economy, average net wage excluding family tax allowances was HUF 149 000 in January-September.

As far as monthly data are concerned, in September the average gross monthly wage of full-time employees was HUF 224 200 within the national economy, up by 5 percent year-on-year. Net wage – at HUF 146 800 – was 6.4 percent higher compared to September 2012. Calculated with an annual inflation rate of 1.4 percent in September, average wages in real terms were worth 4.9 percent more.

The increase of the number of jobs and the parallel increase of real wages have been stabilizing the financial status of households. Higher real wages also help Hungarian families repay their debts or save and spend more. In light of recently published industrial and construction sector output data, which have beaten expectations, the Government’s goal to place the economy on a sustainable growth path is now within reach.

(Ministry for National Economy)