Living Wage Series - Hungary - December 2018 - In Forint, 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 in more than 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 55800-71500 65600-84100 16400-21000
Housing 57900-98000 57900-98000 33500-56600
Transport 19000-19000 19000-19000 9500-9500
Health 18500-27500 18500-27500 4630-6880
Education 10000-15000 10000-15000 0
Other costs 8060-11600 8550-12200 3200-4700
Total Expenditure 169260-242600 179550-255800 67225-98675
Net Living Wage 105788-151625 99750-142111 67225-98675
Gross Living Wage 156600-224400 147600-210300 99500-146000

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) 156600-224400
Standard family (two parents + 2 children, 1.8 working) 147600-210300
Two parents and two children, 2 working 132900-189300
Two parents and two children, 1.5 working 177200-252400
Two parents and two children, 1 working 265700-378600
Two parents and three children, 1.6 working 182000-257000
Two parents and four children, 1.6 working 198000-277400
Single-adult without children, 1 working 99500-146000

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.

  2015 2016 2017 2018
Minimum wage 105000 111000 127500 138000
Living Wage - Single Adult 90700-134100 92800-136600 93000-137400 99500-146100
Living Wage - Typical Family 150100-217000 149900-216400 148300-215300 156600-224400
Real wage of low-skilled worker 97700-111700 101000-115400 108500-124800 120300-145900
Real wage of medium-skilled worker 117400-142800 122800-149400 131800-161600 141300-182900
Real wage of high-skilled worker 173600-223600 179600-232800 194900-255100 213400-298600

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.

Hungary Graph

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 item Grams per day Energy (kcal) Price per kilo
Wheat, barley and cereals products 222 595 300-400
Rice 4 14 200-245
Meat (beef, pork, poultry) 132 222 1200-1500
Oils (soyabean, olive, palm) 18 162 310-350
Sugar (Raw Equivalent) 38 134 200-200
Maize and products 0 1 -
Milk - Excluding Butter 315 157 180-200
Vegetables, Other 114 34 245-400
Potatoes and products 92 61 150-150
Butter, Ghee 27 192 1600-2200
Groundnuts (Shelled Eq) 3 6 1200-1500
Pulses, Other and products 1 2 448-800
Egg (price per 10 eggs) 25 35 333-390
Sunflowerseed Oil 21 190 360-400
Fish products 10 8 1200-2000
Beer (0.5 liter/pint) 127 62 364-400
Sweeteners, Other 31 113 180-240
Beans 1 4 800-990
Sweet potatoes 0 0 445-650
Bananas 6 4 333-390
Apples and products 21 8 200-250
Tomatoes and products 29 6 400-550
Onions 13 5 150-160
Oranges, Mandarines 21 4 299-350
Plantains 1 1 -
Peas 4 14 390-600
Roots, Other 0 0 300-300
Seeds and kernels 0 3 600-1000
Wine (bottle) 47 32 667-1067
Pineapples and products 2 1 -
Cream 13 25 960-1280
Olives (including preserved) 0 1 -
Honey 0 0 1500-1800
Citrus, Other 3 1 -
Lemons, Limes and products 2 1 400-500
Grapefruit and products 1 0 200-200
Coffee and products 0 0 1000-1600

 

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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