Living Wage Series - Hungary - October 2017 - In HUF, per Month

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator uses prices from the Cost of Living Survey to calculate Living Wage for 60 countries. The Living Wage is an approximate income needed to meet a family’s basic needs including food, housing, transport, health, education, tax deductions and other necessities.

The following table summarises the varying expenditure and income needs for the three commonly occurring family household compositions.

Expenditure and Living Wage calculation (monthly rates in Forint)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 57100 73200 67100 86200 16800 21500
Housing 70000 130000 70000 130000 40000 72200
Transport 19000 19000 19000 19000 9500 9500
Health 5000 10000 5000 10000 1250 2500
Education 5000 14000 5000 14000 0 0
Other costs 7810 12300 8310 13000 3380 5290
Total Expenditure 163910 258500 174410 272200 70930 110990
Net Living Wage 102444 161563 96894 151222 70930 110990
Gross Living Wage 151600 239100 143400 223800 105000 164300

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in Forint)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of most common family household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 1.4 children, 1.6 working) 151600 239100
Standard family (two parents + 2 children, 1.8 working) 143400 223800
Two parents and two children, 2 working 129100 201400
Two parents and two children, 1.5 working 172100 268600
Two parents and two children, 1 working 258100 402900
Two parents and three children, 1.6 working 177700 272600
Two parents and four children, 1.6 working 194000 293600
Single-adult without children, 1 working 105000 164300

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in Forint)

The Minimum Wage is a national legally binding obligation on employers which often make no reference to a living standard. Living Wage describes the adequate living standard. The common goal of the many living wage campaigns currently taking place all over the world is to lift Minimum Wages levels to those of the Living Wages. WageIndicator presents Living Wages jointly with Minimum Wages, aiming to raise awareness concerning the remaining differences in levels. Living Wages are presented in context with other wage indicators including prevailing wages of workers over recent years.

  2014 . 2015 . 2016 . 2017 .
  from to from to from to from to
Minimum wage 101500 101500 105000 105000 111000 111000 127500 127500
Living Wage - Single Adult 85900 124800 99700 154000 100900 160700 105000 164300
Living Wage - Typical Family 134400 198600 148100 232300 147000 236000 151600 239100
Real wage of low-skilled worker 94500 108800 98500 113200 100500 115100 115600 137900
Real wage of medium-skilled worker 114900 140600 119900 146300 123500 149900 136200 171900
Real wage of high-skilled worker 167200 217000 174900 226500 177600 228800 200400 272000

Note: Table shows the lowest monthly Minimum Wage in a country, when available. Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web survey on work and wages. Results in the table are rounded.


Food basket and food prices in Forint

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food itemGrams per dayEnergy (kcal)Price per kilo fromto
Wheat, barley and cereals 222 595 300 400
Rice 4 14 200 220
Meat (beef, pork, poultry) 132 222 1200 1500
Oils (soyabean, olive, palm) 18 163 330 350
Sugar (Raw Equivalent) 38 134 200 210
Maize and products 0 1 250 325
Milk - Excluding Butter 315 157 180 200
Vegetables, Other 114 34 300 400
Potatoes and products 92 61 119 150
Butter, Ghee 27 192 400 800
Groundnuts (Shelled Eq) 3 7 500 1500
Pulses, Other and products 1 2 420 500
Cassava and products 0 0 900 1000
Egg (price per 10 eggs) 25 35 333 333
Sunflowerseed Oil 21 190 338 400
Fish products 10 8 1200 2000
Beer 127 62 400 600
Sweeteners, Other 31 113 200 300
Beans 1 4 480 800
Sweet potatoes 0 0 200 200
Bananas 6 4 300 400
Soyabeans 0 0 550 1000
Apples and products 21 8 200 240
Tomatoes and products 29 6 320 500
Onions 13 5 150 180
Oranges, Mandarines 21 4 300 350
Plantains 1 1 299 500
Peas 4 14 390 500
Roots, Other 0 0 300 600
Seeds and kernels 0 3 500 1500
Wine 47 33 667 1000
Cream 13 25 800 1300
Olives (including preserved) 0 1 3000 4000
Honey 0 0 1500 1600
Citrus, Other 3 1 500 600
Lemons, Limes and products 2 1 460 500
Tea (including mate) 0 0 550 1600
Grapefruit and products 1 0 400 500
Coffee and products 0 0 1500 1600

WageIndicator Living Wage background:

The WageIndicator Living Wage is set to provide acceptable living standard to a family of a particular size. WageIndicator presents Living Wages for several household types and working hours which reflect the most frequently found real situations in which people have to make a living: 1. Typical family Living Wage is a baseline estimate that respects the country specific conditions. Typical family is comprised of two adults and the number of children is given by country specific fertility rate (the average number of children a woman is expected to have during her lifespan). One adult is working full-time and the working hours of second adult are approximated by national employment rate. The total income earned by two adults paid living wage is sufficient to reach adequate living standard. 2. Standard family Living Wage is estimated for a family composed of two adults and two children (referred to as family 2+2). Living wage is calculated under different assumptions about working hours. These include that both adults work full-time (family employment rate is 2), or at least one adult works part-time or half-time (family employment rate is 1.8 and 1.5), or one adult does not work at all (i.e. patriarchal model with family employment 1). Alternatives refer to trade-offs between leisure and work and define what living wage represents. In every case the total income earned by two adults paid living wage is sufficient to reach adequate living standard. 3. Extended family Living Wage includes family with three or four children. One adult works full-time and the work intensity of second parent is approximated by national employment rate. 4. Individual Living Wage represents an acceptable standard of living for a single individual working full-time.

Data sources: WageIndicator Cost of Living Survey, World Bank Databank Fertility rate 2010-2014, ILO Estimated participation rate in 2017, FAO Food balance sheet in 2013.

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