According to K&H’s SME Confidence Index, labor market planning for the coming period among company executives is characterized by a wait-and-see attitude and heightened caution; they are striving for stability in workforce levels, while a decline is observed in salaries and fringe benefits, and wage growth expectations have fallen to levels not seen since 2021, K&H Bank told MTI on Thursday.
K&H’s survey was conducted between February 9 and March 6, 2026, based on data collected from business decision-makers at 400 companies headquartered in Hungary with annual revenues under HUF 2 billion.
The press release highlighted that, compared to the fourth quarter of 2025, there has been no shift in planning regarding the number of employees; the overwhelming majority of SMEs are aiming to retain their current workforce this year. 80% of employers do not plan any changes in headcount, while 13% of companies anticipate a moderate increase of 1 to 4 employees. 2% of respondents indicated that they plan a larger-scale expansion of more than 4 employees at their businesses. In contrast, 6% of companies plan to reduce their workforce over the next year.
According to the survey, company executives expect an average wage increase of 5%. 62% of the executives surveyed believe that wages will rise, while 36% believe there will be no change in wages at all. Additionally, 2% believe that wages in their sector will decrease.
In the press release, Zoltán Rammacher, Head of Marketing for the Retail and SME Segment at K&H, pointed out that trends in fringe benefits reflect salary expectations. 34% of companies plan to provide some form of fringe benefit to their employees during the year. Thirteenth-month salaries, bonuses, and premiums, as well as benefits provided via SZÉP cards, remain the most popular; travel expense reimbursements and voluntary pension and health fund contributions are offered by a much smaller percentage of companies.
He added that employees can expect more modest wage increases and benefit packages in the market this year.
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