Saturday , January 23 2021

Hungary is slow: the average wages in the region are low

It became clear that between the Visegrad Member States, Hungary was the last resort to average salaries. The question is whether the current salary negotiations change so much. The Political Agenda now investigates what salary wages must be made on the basis of future legal laws for direct competitors in Hungary.

Photo: / Szabó Daniel

In 2017, Hungary was located among the member states of Visegrád regarding average salaries, based on an earlier analysis of the organization. According to this, although the Hungarian salary gap will be moderated by 2021, however, one country does not adhere to domestic payments. Based on the 2019 budget, yet more intense improvements can be made, but this does not reach a substantive change in the regional comparison.

According to data, in 2018, Romania is expected to have the highest rate of salary increase. At the same time, the Hungarian growth rate is good and that in any case means we are lowering the other V4 Member States.

Projects in the 2019 budgetary laws (data in% compared to the previous year)
2018 2019 2020 2021
wages inflation wages inflation wages inflation wages inflation
Bohemia 9.3 2.3 8.3 2.3 5.5 2.3 5.4 2.3
Slovakia 6.2 2.6 6.3 2.5 6.2 2.5 5.4 2.5
Poland 5.6 2.3 5.6 2.3 5.5 2.5 5.5 2.5
HUNGARY 10.7 2.5 8.8 2.7 6.3 2.9 5.9 3
Romania 13.6 3.5 9.3 2.8 7.5 2.5 7.3 2.3

source: Political agenda

However, the forecasts for the next three years show a more moderate rate of salary increase in Hungary, because it will decrease by 7% at an annual average of over 10%. It seems that if the wages grow as much in the region as it is in the budget project, Hungary's pay reimbursement will take place for the Polish-Slovak-Slovak triple. But this is only a fall in the gap, not a return: average payments in each country are still at least 10 percent higher than in Hungary. For the Czech Republic, the 30% percentage dirty salary gap would remain.

In Romania, it is not necessary to wait for the Hungarian pay level but to reduce the gap by 5 percent to the more predictable salaries – the authors of the investigation are writing.

But this is just a projection: even the Hungarian values ​​can be improved because the edits are just indicative. At home, the government predicted this 2015-2018. The rate of wages will increase will be 2.7 percent per year, which is still 8.5 percent annually, thanks to a double rise in the minimum wage and labor deficiency.

The data show that in the current state, the Hungarian pay-increase schedule is not enough to make Hungarian salaries not significantly lower than our direct competitors. In order to reduce the gap, current pay rates, and in particular the lower growth rate in 2020-2021, require higher pay growth than planned. In order to do this, it is necessary to change the tax system – summarize the analysis of the Political Agenda.

The rising salaries for the Hungarian salary production for the next year have not yet been in agreement with the employer and employee. The latter wants at least two-digit increases, but this is not supported by employers – as reported here by

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