Living Wage Series - Hungary - September 2019 - 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 70 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 HUF)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 77900-96100 89000-109800 22300-27500
Housing expenses 67500-115400 67500-115400 39800-66600
Transport expenses 19000-19000 19000-19000 9500-9500
Healthcare expenses 20000-25000 20000-25000 5000-6250
Education expenses 10000-15000 10000-15000 0
Other expenses 9720-13500 10300-14200 3830-5490
Total Expenditure 204120-284000 215800-298400 80430-115340
Net Living Wage 127575-177500 119889-165778 80430-115340
Gross Living Wage 188800-262700 177400-245400 119000-170700

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in HUF)

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 + 1.5 children, 1.6 working) 188800-262700
Standard family (two parents + 2 children, 1.8 working) 177400-245400
Two parents and two children, 2 working 159700-220800
Two parents and two children, 1.5 working 212900-294400
Two parents and two children, 1 working 319400-441600
Two parents and three children, 1.6 working 221300-302700
Two parents and four children, 1.6 working 242800-329400
Single-adult without children, 1 working 119000-170700

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in HUF)

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.

  2016 2017 2018 2019
Minimum wage 111000 127500 138000 149000
Living Wage - Single Adult 98700-141700 104300-149900 113400-162500 119000-170700
Living Wage - Typical Family 167900-234300 170800-240200 183400-253600 188800-262700
Real wage of low-skilled worker 128300-153600 151400-188700 195100-233000 171600-214400
Real wage of medium-skilled worker 139200-175900 159500-205600 206100-256300 174100-224500
Real wage of high-skilled worker 203400-275700 232900-321300 303600-404800 257000-356200

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.

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Food basket and food prices in HUF

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 222 595 310-400
Rice 4 15 200-300
Meat (beef, pork, poultry) 132 222 1300-1500
Oils (soyabean, olive, palm) 18 163 -
Sugar (Raw Equivalent) 38 134 200-220
Maize and products 0 1 -
Milk - Excluding Butter 315 157 190-200
Vegetables, Other 116 34 235-300
Potatoes and products 92 61 150-200
Butter, Ghee 27 192 1600-2200
Groundnuts (Shelled Eq) 3 7 -
Pulses, Other and products 1 2 -
Egg (price per 10 eggs) 25 35 4200-4800
Sunflowerseed Oil 22 193 300-400
Fish products 10 8 1200-2000
Beer (0.5 liter/pint) 129 63 400-400
Sweeteners, Other 31 113 -
Beans 1 4 -
Bananas 6 4 350-400
Apples and products 21 8 250-300
Tomatoes and products 30 6 400-500
Onions 13 5 150-200
Oranges, Mandarines 21 4 300-400
Plantains 1 1 -
Peas 4 14 390-390
Seeds and kernels 0 3 -
Wine (bottle) 48 33 1070-1330
Pineapples and products 3 1 -
Cream 13 25 1370-1600
Olives (including preserved) 0 1 -
Citrus, Other 3 1 -
Lemons, Limes and products 2 1 350-500
Coffee and products 0 0 700-1100

 

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.

WageIndicator useful links:

Publication Guzi, M., & Kahanec, M. (2019). Estimating Living Wage Globally. Amsterdam, WageIndicator Foundation
WageIndicator Wages in Context Map with the latest updates
All You Always wanted to Know about Living Wages
Donations

 


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