Czech Domestic Wages on the Rise
The Hungarian wage situation is not as dire as often portrayed in the media, especially when compared to neighboring countries. Recent data from the statistical offices of the region’s countries show a significant wage increase in the region despite economic challenges and a weak European economy.
Poland, renowned for its dynamic economy, has surpassed the Czech Republic to become the country with the highest average gross wages among the Visegrád countries (Poland, the Czech Republic, Slovakia, Hungary). In the first quarter of this year, the average wage for Poles was 8,147 zloty (1,904 euros).
On the other hand, the Czech Republic and Slovakia have experienced slower wage growth, with wage dynamics below 10 percent for several years. The Czech economy has been particularly impacted by the war crisis, leading to a decline in real earnings by more than 10 percent in two years. In comparison, the average gross wage in Hungary during the same period was 623,000 forints (1,573 euros), marking a growth rate higher than that of Czech salaries.
Romania has also seen improvements in average gross earnings, attributed in part to a tax reform in 2017 that shifted contributions to workers. However, Romanian employees still face higher taxes compared to the rest of the region, resulting in a lower net salary.
Slovakia remains at the bottom of the list in terms of average gross salary, with slower wage growth compared to Hungary. It is essential to note that wage measurements vary across countries, with Poland’s inclusion of larger companies in the sample potentially inflating wage dynamics.
Despite these discrepancies, the data indicate a narrowing gap between average wages in Hungary and neighboring countries, suggesting a gradual convergence in the region’s wage landscape.
