Slowing Wage Growth In Hungary’s Economy
Hungary’s economy pay growth in the private sector continued to accelerate. The overall average gross salary growth in November was 16.7%, down from 18.1% in October. This shows that even though the economy is slowing, the labor market remains tight.
Some countries like Hungary have not seen inflation reach its peak. In December, the country’s annual inflation was at 24.5%. However, Central European central banks have ended or are trying to end tightening policy after strong rate increases to combat inflation.
The private sector’s pay growth has continued to pick up in Hungary. It rose to 18.7% in October from 16.8% and 18.2% respectively in September. Employers and the government agreed to 16% increases in the minimum wage for 2023. This will have an impact on salary decisions when the year starts.
While this year’s salary growth will be 15%, the overall wage growth for 2022 will likely exceed 17.5%. This could be higher if there are intermediate wage increases, as last year.
According to the Central Statistics Office of (KSH), the wage gains in…