Growth was boosted by the one-off effect of bringing forward the minimum wage increase
Budapest, 29 January 2024 - By the end of the fourth quarter of 2023, the average gross hourly wage of skilled and semi-skilled manual workers was HUF 1952, according to an analysis of Trenkwalder's payroll data on nearly 7,000 employees. This represents an increase of 19.8 percent compared to 1630 forints in the same period last year. Wage growth was more modest in the top pay brackets, with Moore Hungary seeing a 10.3 percent increase in wages for around 500 middle managers in more than 60 mostly internationally-owned domestic companies compared to the fourth quarter of 2022.
Geographically disaggregated statistics show that there is no significant difference between the average physical wages in most regions, with a relatively narrow range of between HUF 1700 and 1900. Only Central Transdanubia and Central Hungary and the capital stand out from this field: in the former region the average hourly wage is already 2100 HUF, while in the latter it is now close to 2600 HUF.
„There was also a one-off effect that contributed to the apparently strong growth: the minimum wage increase was exceptionally applied to December wages, so companies have already implemented their pay rises this year, which are usually only due in January - said Viktor Hamrák, Trenkwalder's service director. - Without it, we estimate that the annual rate of wage growth would have been between 13 and 15 percent. With inflation already up by only 5.5 per cent in December compared to a year earlier, it is safe to say that real wages are back on an upward path after a decline in 2023.”
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 HUF 700,000 and HUF 1 million, the average wage increase in the fourth quarter of 2023 was 10.3 percent compared to the same period last year.
„Among intellectual middle managers salaries are typically only settled in January of each year, despite this, it is now in this round also reached double digits by the end of the year rate of wage growth - explains Péter Hajnal, Managing Partner of Moore Hungary. While many businesses are still struggling with funding problems due to the recession, most jobs at middle management level should now see a return to real wage growth.”
With more than 60 thousand employees nationwide, the for middle managers in service centres (SSCs) is also slightly below the average for middle managers in the intellectual professions above, Wage increase of 9.3 per cent implemented over the past year, according to data from Moore Hungary. Both exit and entry turnover in this group remain relatively high at around 4 percent, meaning turnover remains active. Firms are likely to try to mitigate this next year, as competition increases, by offering higher wages to existing staff.
Moore Hungary
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