How big will the wage increase be next year? Three factors that will determine the development of the Hungarian labor market
In addition to the further decline in unemployment and the effects of the Chinese investment boom, the decline in real wage growth will determine the Hungarian labor market in 2025, but despite the difficulties, most companies are still thinking about raising wages, says Dr. Ágnes Tóth, CEO of Prohuman Zrt. Although the Hungarian economy is currently in a recession, she also sees positive signs and continues to expect the labor market to remain tight.
Although the “headline” of 2024 is still in full swing, company leaders have already turned their thoughts to planning for next year. Understandably, the first question employees ask is how much of a wage increase they can expect – but it is in this area that Prohuman Zrt., which as Hungary’s leading HR service provider helps hundreds of businesses meet their labor needs, experiences the greatest uncertainty.
“Employers typically adjust their decisions on wage increases to the rate of inflation. This year, they expected a higher price level increase than what actually happened, and higher wage increases were planned, which resulted in real wages growing more than expected
– explains Dr. Ágnes Tóth, CEO of Prohuman.
We see that in 2024, real wages in the private sector are expected to increase by an average of 7.9%, which is a welcome development for employees and good news for the economy – however, it will still not be easier for companies to retain and acquire employees, as this is influenced by factors other than wages. According to our forecast, we can expect further nominal wage growth in 2025, but we are already seeing signs of more cautious planning: on the one hand, most companies are trying to postpone the decision as much as possible and are thinking of an average wage increase of around 7% from January, but perhaps a 5% wage correction might be a more realistic expectation.”
However, significant differences in the extent of wage increases may also develop between the public and private sectors, and between individual industries and regions.
Related news
The importance of a good atmosphere at work precedes salary among young people – here is Randstad’s 2025 research
Hungarian workers still seek financial security – but for younger…
Read more >Retail sales growth accelerated in Poland and unemployment fell in April
In Poland, retail sales in April accelerated strongly in April,…
Read more >More home office job opportunities have opened up in the past year than in the year before
Last year, the majority of affected employees expected a tightening…
Read more >Related news
Food Price Margin Reduction Extended Until the End of August
István Nagy, Hungary’s Minister of Agriculture, announced on his official…
Read more >Profitability of trade is decreasing – the government is opening up substantial resources
On May 28, Laurel Számítástechnikai Kft. held its 12th Retail…
Read more >Rules on meat products are getting stricter – a new concept is also included in the regulation
A new regulatory amendment has been proposed in Hungary: the…
Read more >