Hungary’s wage growth remained strong in January 2025, with the gross average salary reaching 668,100 forints, representing a 10.4 per cent increase compared to the previous year, according to the latest data from the Hungarian Central Statistical Office (KSH). This trend has contributed to a 4.6 per cent rise in real wages, marking 17 consecutive months of growth.
State Secretary for Employment Policy Sándor Czomba highlighted that rising real incomes are restoring consumer confidence, as seen in increased retail activity, higher loan demand, and a strong housing and automotive market. The tourism industry has also maintained momentum after a record-breaking 2024.
Employment figures remain robust, with nearly 4.7 million people currently working in Hungary, one million more than in 2010. Over the past decade, average wages have tripled, and the minimum wage has quadrupled. The government is focused on strengthening low-income earners and the middle class, which is reflected in its New Economic Policy Action Plan, a three-year wage agreement aiming for a 40 per cent increase in the minimum wage by 2027.
Hungary’s long-term goal is to raise the minimum wage to 1,000 euros and the average salary to 1 million forints. To achieve this, the government has launched Europe’s largest tax reduction programme, which includes full personal income tax exemptions for mothers with two or more children.
To further protect purchasing power, the government has taken steps to counter unjustified price increases by capping margins on 30 essential food categories. This policy has already resulted in an average price reduction of 17.7 per cent across 1,000 products. Officials have pledged to continue implementing measures that expand household financial security and keep inflation in check.
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