Hungary’s Wages on the Rise
Wages in Hungary have seen a significant rise, placing the country among the top performers in the EU. According to a recent Eurostat survey, Hungary experienced the third-highest increase in hourly labor costs in the third quarter of 2024 compared to the same period last year.
The survey revealed that hourly wages and salaries in the EU increased by 5.0%, while the non-wage component rose by 5.3% in the same period. Hungary, in particular, saw a 14.1% increase in hourly labor costs between July 2024 and September 2024, marking the third highest growth rate in the EU. Only Romania and Croatia recorded higher wage increases during this period.
Despite the positive growth in wages, Hungary has historically lagged behind other EU countries in terms of average annual full-time adjusted salaries. In 2023, the average annual full-time adjusted salary in the EU was EUR 37,900, while in Hungary it was only EUR 16,900, placing the country in second-to-last position in the rankings.
To address this issue, a three-year wage agreement was reached between the government and employers’ representatives in November 2024. As part of the agreement, the minimum wage in Hungary is set to increase progressively, with the goal of reaching 50% of the average gross earnings by 2027. Monthly minimum wage will see a 9% rise in 2025, followed by a 13% increase in 2026, and a 14% increase in 2027.
These developments indicate positive growth in wages and salaries in Hungary, signaling a promising outlook for the country’s labor market and economy in the coming years.
