Majority of Employers to Increase Wages in 2021
Employers in Hungary are planning to raise wages by an average of 8.4% this year, according to a recent survey by job site Profession.hu. The survey, which involved 440 corporate partners, also revealed that large companies with a turnover of more than HUF 10 billion and over 300 employees expect a 5% wage increase, while companies in eastern Hungary and those employing manual workers anticipate even higher increases at 10.4% and 11.6% respectively.
The survey indicates a shift from last year’s higher wave of wage increases to a more modest one in 2025, with a stronger demand for pay raises from employees. Six out of ten employers believe that the rate of delivery will fall short of their expectations, and there is a steady decline in the proportion of employers planning to increase fringe benefits.
While more than one in five organizations plan to increase overall benefits by an average of 7%, the majority (73%) will make no changes. The primary reasons cited for increasing fringe benefits were to retain current employees and attract new professionals. However, 4% of companies intend to reduce their benefit packages by an average of 8%.
Overall, the survey highlights the changing landscape of wage and benefit planning in Hungary, with employers adapting to meet the demands of their workforce while also considering the realities of the current economic climate.
