Every Second Company Plans to Raise Wages Next Year

One in two companies plans to raise wages next year, but that is a lower proportion the one than this year, and every fifth company plans to increase the amount of the cafeteria allowance next year, according to a survey by the Profession.hu job portal.

The portal has carried out its latest survey based on the responses of nearly 500 companies, examining employers' expectations for next year and their plans for wage development and recruitment.

In a statement sent to MTI, the survey found that the optimistic forecasts of employers at the beginning of the year for 2024 seem to have been confirmed over the past nine months, as more jobs have seen wage increases this year (74%) than those that had previously planned for it (53%). However, the rate of pay rises has been lower than in the past, with several companies that had previously calculated higher amounts keeping it between 5-9%. The average increase was thus 11% instead of the 11.7% planned at the beginning of the year.

As the end of the year approaches, companies are already preparing for 2025, and planning is again characterized by caution. Even so, one in two respondents said they would raise salaries next year, but they were thinking of a lower average increase of 9.5% compared to this year. The trend over the last three years has been that more companies are finally improving wages compared to their previous forecasts.

The survey shows a lower-than-average share of those in public administration planning to increase wages, while more foreign private companies are planning to increase wages, but are forecasting a lower-than-average amount (7.8%).

According to the survey, almost half of companies also provide fringe benefits to their employees, which is more common in companies with a turnover of over HUF 1 billion (59%). Where there is a cafeteria allowance, it is most common (25%), ranging from HUF 21-30 thousand per month on top of salary, and almost as common (21%) to exceed HUF 81 thousand. One in five companies currently plan to increase this amount next year, by 13% on average, while only 2% of respondents plan to reduce it.