Average pay increase for middle managers just over 4 percent
In the fourth quarter of last year, the average gross hourly wage of skilled and semi-skilled manual workers was HUF 1441, according to an analysis of Trenkwalder's payroll data on nearly 7,000 employees. This represents an increase of 9 percent compared to 1,322 forints in the same period in 2020. Wages in the top categories have changed at a much more moderate pace: Moore Hungary found a 4.2 percent increase in wages for around 500 middle managers in more than 60 mostly internationally owned domestic companies compared to the fourth quarter of 2020.
Statistics by region show that by the end of 2021, no part of the country will have an average hourly wage below HUF 1300. Differences between regions have decreased somewhat in the last year, with most regions having average hourly wages between 1300 and 1450 HUF, and the Central Transdanubian region around 1500 HUF. Budapest and Central Hungary continue to stand out from the national average at around HUF 1900.
„The national average wage of 1429 forints in the third quarter grew by less than one per cent in the last three months of the year compared with the level of physical wages - points out Viktor Hamrák, Service Director at Trenkwalder. - But we can already see that it will gain momentum early this year the rise in hourly wages. A a minimum wage increase of nearly 20 percent it also puts upward pressure on companies offering higher wages to maintain competitive wage offers. In addition the current inflation rate of over 7 percent is also a major wage driver. By looking at the remuneration strategies of competitors, we can expect further increases from companies during the year, which is why Double-digit wage increases throughout 2022 can be predicted among people in manual work.”
At the same time, Moore Hungary examined the salary data of nearly 500 middle managers working at the domestic subsidiaries of more than 60 international companies. For employees working in the gross monthly salary range between 700,000 and 1 million HUF, the annual wage increase rose from 2.9 percent last year to 4.2 percent last year.
„The data show that average wage growth among middle managers last year was below the rate of inflation. - points out Péter Hajnal, Managing Partner of Moore Hungary. Even though turnover rates in this segment have remained very low over the past year, there is a good chance that firms will continue to will be forced to increase by a higher rate of at least 6-8 per cent, if they want to retain their senior employees for the longer term.”
The impact of increasing wage competition is already visible in the case of service centre companies (SSCs), which already employ more than 60,000 people nationally: in the middle management pay band, these companies have seen a much higher than average pay rise of 8.1% over the past year. Experience shows that the pandemic has had a positive impact on this sector, as both the need to reduce costs and the positive experience of teleworking have encouraged greater outsourcing.
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