Impressive Salary Growth Outpaces Inflation
The average gross salary in a national industry in Hungary has reached a record high of HUF 1 million (EUR 2,681) for two consecutive months, according to a report by World economy. While this may still be a dream for many Hungarian professionals, the report suggests that by the end of the decade, it could become more common.
Salaries in Hungary have been struggling to keep up with inflation for months, but the recent wage growth has been impressive. Regular earnings have been steadily increasing at a rate between 16 and 17 percent since the beginning of the year. In April, the average gross earnings rose to HUF 568,000 (EUR 1,523), an increase of HUF 76,000 (EUR 204) compared to the previous year.
The financial sector has seen significant salary growth, with average gross monthly earnings surpassing the 1 million forint mark in both March and April. The information and communication sector is in second place with an average gross salary of HUF 938,000 (EUR 2,515).
Inflation seems to be driving up wages in all sectors, with the Central Statistics Office reporting dynamics of over 14% in three-quarters of sectors. The health sector, manufacturing, scientific and technical activities, and public administration and defense are among the sectors where earnings were above the national average in April.
The mining sector experienced the highest wage increase, surpassing the 24% inflation rate with a 26% increase. On the other hand, construction and accommodation and food services remain at the bottom of the list with salaries of HUF 422,000 (EUR 1,132) and HUF 366,000 (EUR 981) respectively.
While it may take some time for the average salary in the entire economy to reach HUF 1 million (EUR 2,681), the report suggests that a 7-9% wage dynamic could be sustained in the medium term. By 2030, average gross wages are expected to surpass the one million mark. However, it is important to note that the value of this amount will likely be significantly less than it is today.
Overall, the recent growth in salaries in Hungary is a positive development, suggesting an improvement in the country’s economic conditions.
