Distribution of earnings changes in Hungary, 1st quarter 2025
Released: 23 July 2025
In the first quarter of 2025, earnings continued to grow dynamically, but at a slower pace compared to the previous quarters. The average gross earnings of full-time employees nominally exceeded the value measured in the same period of the previous year by 9.2%1, but the growth rate was 5 percentage points lower than in the same period of the previous year. The 9% and 7% increase in the minimum wage and guaranteed minimum wage, respectively, as well as the pre-scheduled wage increases in public service sectors, especially the second stage of the teacher wage increase implemented in public education, played a decisive role in wage growth. The wage-raising effect of additional labour demand was still significant in some sectors, too.
Figure 1
There were significant differences behind the growth at the economy-wide level.2 More than four-fifths of individuals with full-time jobs saw their gross earnings rise compared to the same period of the previous year, with more than half of employees seeing between 5.0% and 24.9%. At the same time, the more subdued wage growth is explained by the fact that the share of those with an increase in earnings of at least 15% declined by 17.2 percentage points compared to the first quarter of 2024, while the share of jobs with a wage increase of 5–14.9% rose by almost 6 percentage points.
The change in earnings is not only driven by the change in the basic wages, but is also significantly influenced by, for example, the regular wage, the size of additional payments and the amount, timing or non-payment of bonuses, depending on the length of time worked. In addition, workers' responsibilities, jobs and employers may also change, which also affects their earnings. In the first quarter of 2025, the distribution of earnings changes was determined by the more subdued growth of the two main components - regular and non-regular income (premiums, bonuses, 13th month and additional monthly payments).
Figure 2
Differences across economic branches are also clearly marked in the distribution of earnings changes. As a result of the rise in teachers’ salaries in January, education continued to have the largest and most extensive increase in wages, affecting the highest number of employees. In sectors with high average earnings – including the energy industry, financial activities, mining, as well as information and communication – the proportion of those whose wages increased by more than 15% was higher than in other sectors. The slowdown in gross earnings growth in manufacturing is well reflected in the fact that this sector had one of the highest proportions of employees with decreasing earnings, and also one of the lowest proportions of those with wage increases of over 15%. In the public administration and defence sector, more than a quarter of employees saw their earnings fall, in a context where the average of non-regular earnings also decreased in nominal terms over a year, and the range of pre-scheduled wage increases was also narrower than in the same period of the previous year.
Figure 3
The increase in average net earnings adjusted for benefits has not reached the increase in average gross earnings at the economy-wide level, because some of the tax and contribution benefits - including the family allowance, which accounts for the largest part of the benefits - are maximised and do not increase in direct proportion to gross earnings.
Figure 4
As a result of a more moderate increase in nominal earnings and a stronger rise in inflation, the share of those whose net earnings fell in real terms increased from 21.2% to 36.0% compared to the same period of the previous year.
Figure 5
Expected next release of data for 1st half-year 2025: September 2025
Footnotes
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Official statistical data. ↩
-
The purpose of experimental statistics is to supplement and expand the information content of the change in average earnings published as official statistics by showing the distribution behind the change in the average, too. The statistics look at the change in earnings of individuals with full-time jobs, i.e. how the total earnings of the employee have changed (basic wages, direct remuneration, payments for days not worked, bonuses, premium, 13th and additional monthly pay together, compared to the same period of the previous year, regardless of whether the job or employer has changed). No specific information is available for each pay element.) ↩
Released: 23 July 2025
In the first quarter of 2025, earnings continued to grow dynamically, but at a slower pace compared to the previous quarters. The average gross earnings of full-time employees nominally exceeded the value measured in the same period of the previous year by 9.2%1, but the growth rate was 5 percentage points lower than in the same period of the previous year. The 9% and 7% increase in the minimum wage and guaranteed minimum wage, respectively, as well as the pre-scheduled wage increases in public service sectors, especially the second stage of the teacher wage increase implemented in public education, played a decisive role in wage growth. The wage-raising effect of additional labour demand was still significant in some sectors, too.
There were significant differences behind the growth at the economy-wide level.2 More than four-fifths of individuals with full-time jobs saw their gross earnings rise compared to the same period of the previous year, with more than half of employees seeing between 5.0% and 24.9%. At the same time, the more subdued wage growth is explained by the fact that the share of those with an increase in earnings of at least 15% declined by 17.2 percentage points compared to the first quarter of 2024, while the share of jobs with a wage increase of 5–14.9% rose by almost 6 percentage points.
The change in earnings is not only driven by the change in the basic wages, but is also significantly influenced by, for example, the regular wage, the size of additional payments and the amount, timing or non-payment of bonuses, depending on the length of time worked. In addition, workers' responsibilities, jobs and employers may also change, which also affects their earnings. In the first quarter of 2025, the distribution of earnings changes was determined by the more subdued growth of the two main components - regular and non-regular income (premiums, bonuses, 13th month and additional monthly payments).
Differences across economic branches are also clearly marked in the distribution of earnings changes. As a result of the rise in teachers’ salaries in January, education continued to have the largest and most extensive increase in wages, affecting the highest number of employees. In sectors with high average earnings – including the energy industry, financial activities, mining, as well as information and communication – the proportion of those whose wages increased by more than 15% was higher than in other sectors. The slowdown in gross earnings growth in manufacturing is well reflected in the fact that this sector had one of the highest proportions of employees with decreasing earnings, and also one of the lowest proportions of those with wage increases of over 15%. In the public administration and defence sector, more than a quarter of employees saw their earnings fall, in a context where the average of non-regular earnings also decreased in nominal terms over a year, and the range of pre-scheduled wage increases was also narrower than in the same period of the previous year.
The increase in average net earnings adjusted for benefits has not reached the increase in average gross earnings at the economy-wide level, because some of the tax and contribution benefits - including the family allowance, which accounts for the largest part of the benefits - are maximised and do not increase in direct proportion to gross earnings.
As a result of a more moderate increase in nominal earnings and a stronger rise in inflation, the share of those whose net earnings fell in real terms increased from 21.2% to 36.0% compared to the same period of the previous year.
Expected next release of data for 1st half-year 2025: September 2025
Footnotes
-
Official statistical data. ↩
-
The purpose of experimental statistics is to supplement and expand the information content of the change in average earnings published as official statistics by showing the distribution behind the change in the average, too. The statistics look at the change in earnings of individuals with full-time jobs, i.e. how the total earnings of the employee have changed (basic wages, direct remuneration, payments for days not worked, bonuses, premium, 13th and additional monthly pay together, compared to the same period of the previous year, regardless of whether the job or employer has changed). No specific information is available for each pay element.) ↩