Average gross wages in Hungary rose by 10.2 percent year-on-year to HUF 360,000 in December 2018, easing from a 10.4 percent gain in the previous month. Wages increased at a slower pace in the private sector (10.7 percent compared to 11.1 percent in November) while advanced further in the public (8.2 percent compared to 8.1 percent). Considering full 2018, average gross earnings rose 11.3 percent to HUF 329,900. Earnings growth was impacted by a boost in labour demand, rises of 8 percent in the minimum wage and 12 percent in the guaranteed minimum wage as well as salary adjustments affecting specific areas of the public sector and the employees of some state-owned public service companies. Wage Growth in Hungary averaged 8.25 percent from 1999 until 2018, reaching an all time high of 26.19 percent in January of 2005 and a record low of -5.30 percent in January of 2009.
Wage Growth in Hungary is expected to be 8.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Wage Growth in Hungary to stand at 8.40 in 12 months time. In the long-term, the Hungary Gross Average Wages Growth is projected to trend around 6.00 percent in 2020, according to our econometric models.