K&H Analyst Commentary: Households will receive support

By: Trademagazin Date: 2025. 08. 27. 12:30

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In June, the gross average wage increased by 9.7 percent year-on-year, while the net average salary increased by 9.6 percent. Thus, the former exceeded 704 thousand forints, and the latter exceeded 484 thousand forints. The median value of the gross salary was nearly 568 thousand, and the median value of the net salary was 395 thousand forints, which corresponds to an increase of 10.3 and 10.5 percent, respectively.

Dávid Németh, chief analyst at K&H, said: This year’s data shows that there was a halt in May, which seems to be an exception, since gross average wages increased by 9.2 percent in the first half of the year. The latter level is exceeded by the June data, and the sixth monthly real wage increase of 4.8 percent can also be considered to be on schedule.

“The reason for the high wage dynamics is probably that companies are trying to retain skilled labor even in a weaker economic situation, as they may still have vivid memories of when there was excess demand on the labor market, meaning they could not find suitable labor on the market. In addition, the 9 percent increase in the minimum wage also contributed to the growth,” the expert said.

He added: “According to the current outlook, we are unlikely to expect a significant slowdown in the second half of the year, and in addition, the wages of civil servants working in public administration will increase from September. This will also accelerate wage dynamics.” According to the expert, inflation may fluctuate in the range of 4 to 5 percent by the end of the year, so real wages may show an increase of slightly more than 4 percent, which may provide support for the expansion of household consumption.