Real wages may continue to rise in the SME sector

By: Trademagazin Date: 2024. 08. 29. 11:36

Employees of domestic micro, small and medium-sized enterprises can also count on salary increases above inflation and cafeteria allowances. Based on the latest data from the K&H SME confidence index research, an 8.2 percent wage increase is expected in the SME sector, and half of the companies plan to provide extra benefits in the next year. In addition, employment may develop favorably.

Whether we look at the 3-4.5 percent annual inflation expected by the Magyar Nemzeti Bank for this year, or the 2.5-3.5 percent indicated for 2025, wages in the SME sector may rise by more than this in the next year. Based on the second-quarter results of the K&H SME confidence index, which examines the expectations of Hungarian micro, small and medium-sized enterprises for the next year, enterprises indicate an average wage increase of 8.2 percent in the sector.

“Salary increases exceeding inflation are believed to represent a slow correction of the double-digit inflation typical of recent years, but it also shows the intention to retain a qualified and experienced workforce. This is also confirmed by the fact that, compared to 66 percent at the beginning of the year, 71 percent are currently counting on a wage increase”

– the results were detailed by Németh Ildikó Oraveczné, marketing manager of the residential and SME segment of K&H.