What’s behind Hungary’s record salary?

Hungary’s record salary
Monthly wages in Hungary rose by nearly a third in February compared to the same month last year, according to the Central Statistics Office (KSH). Although the wage increase was a record high on paper, most Hungarians did not see a significant wage increase. The main reason behind this opposition is the sharp increase in the minimum wage and the budget for the military and the police is equivalent to six months’ salary. This benefit alone will significantly increase the average income of the national economy. In comparison, real wage growth, adjusted for high inflation in Hungary, is in the range of 3-4%, according to estimates from the economic news website Portfolio
The average monthly wage in Hungary rose by 31.7% year-on-year in February to HUF 545,965 (€1,439), KSH reported on Tuesday. Average net profit growth was also higher, at 31.9%. Despite the record number, most Hungarians’ salaries did not increase, which is why most people were surprised by the new data.
The KSH also revealed in a recent report that the major wage increases are related to the payment of “service fees” (also known as “army fees”) for military and law enforcement personnel. . There are huge bonuses for maintenance workers and legal workers, and their monthly salaries will increase. Average public sector profits increased by 53.5% in February last year. In comparison, the average gross income (total income without subsidies and fees), excluding the salary increase for law enforcement officers, is HUF 445,000 (€1,173), which is only 14.5% compared to same time last year. If we only look at the data of the business sector, the price growth is lower. In businesses employing at least five workers, the average wage increased by 12.2% in February compared to the same period last year. The economic news website Portfolio said in an analysis that law enforcement salaries nearly tripled in February due to “gun money.” climbing.