Wages in Hungary Among Fastest Rising

Wages in Hungary rose at the third-highest rate in the EU in the third quarter of 2024 compared to the same period last year, Portfolio reports, citing a recent Eurostat survey. In the third quarter of 2024 the hourly labor costs rose by 5.1% in the

By: hungarytoday.hu

Dec 17 2024
40
2523 Views

Wages in Hungary Among Fastest

Wages in Hungary rose at the third-highest rate in the EU in the third quarter of 2024 compared to the same period last year, Portfolio reports, citing a recent Eurostat survey.

In the third quarter of 2024 the hourly labor costs rose by 5.1% in the EU, compared with the same quarter of the previous year. The two main components of labor costs are wages and salaries, and non-wage costs. In the EU, in the third quarter of 2024 compared with the same quarter of the previous year the costs of hourly wages and salaries increased by 5.0% and the non-wage component increased by 5.3%, the survey reveals.

Hourly labor costs in Hungary increased by 14.1% between July 2024 and September 2024 compared to the third quarter of 2023.

This puts Hungary among the top league in the EU with the third highest growth. Only Romania (17.1%) and Croatia (15.1%) recorded higher wage increases.

Source: europa.eu

Domestic non-wage labor costs rose by 12.8% in a year (the sixth highest increase in the EU). Overall, hourly labor costs in Hungary increased by 13.9% year-on-year in the third quarter of 2024, the third highest increase in the EU, similar to the rate of wage growth.

However, looking at average wages in the EU, it is clear that it was high time for Hungary to start catching up. Eurostat’s latest statistics comparing wages in EU countries, published in November 2024, highlight the fact that Hungary has been lagging far behind in terms of wages.

Source: europa.eu

In 2023, the average annual full-time adjusted salary for employees in the EU was EUR 37 900, while in Hungary EUR 16 900.

This means that the country was in second-to-last place in the statistics. The third lowest average annual full-time adjusted salary was in Greece with EUR 17 000, almost tied with Hungary. Among the EU countries, the highest average annual full-time adjusted salary was recorded in Luxembourg (EUR 81 100), followed by Denmark (EUR 67 600) and Ireland (EUR 58 700).

Fact

As reported by Hungary Today, a three-year wage agreement was reached between the government and the forum representing employers in November this year. In line with the agreement, in 2027, the minimum wage must reach 50% of the average gross earnings designated by the government withing the framework of the new economy policy. In accordance with the agreement, monthly minimum wage will rise by 9% in 2025, by 13% in 2026, and by 14% in 2027.

Job Opportunities and Wages See Significant Growth Since 2010