After years of high inflation, the European economy is experiencing a turnaround in incomes. While the eurozone is slowly stabilizing, two countries stand out in particular: Hungary and Türkiye. New data shows that workers in the eastern part of the continent are benefiting most from dynamic wage growth.
According to a report by Euronews based on data from the European Central Bank (ECB), real wages in the eurozone have largely recovered from the massive slump of 2022. As nominal wages are currently rising faster than prices, European households are gradually regaining purchasing power. The level seen before the inflation crisis at the end of 2021 will almost be reached again by the beginning of 2025.
Hungary plays a special role within the European Union.
As Fidesz MEP András László pointed out on X, the country recorded the highest real wage growth in the entire EU in 2025 – a trend that is forecast to continue in 2026.
This development is supported by government adjustments. On January 1, 2026, the Ministry for National Economy implemented significant increases.
- Minimum wage: 11 percent increase to 322,800 forints (840 euros).
- Guaranteed minimum wage: Increase of 7 percent to 373,200 forints (970 euros).
These measures not only lead to more net income for low-wage earners, but also have a “boosting effect” on higher salary brackets.
Outside the EU, Türkiye stands out with the highest growth on the continent. According to the Salary Trends Report of the European Court of Auditors (ECA), real wage growth of 5.1 percent is expected for Türkiye in 2025 and as much as 8.1 percent in 2026. However, experts such as Steven Kilfedder from the ECA point out that this is based on very high nominal increases (approx. 40 percent) and extremely high inflation at the same time. Despite the growth, Turkish workers are still far from their original purchasing power.
A clear trend is the overtaking of Western economies by Central Eastern Europe.
According to the forecast, Hungary (3.5 percent), Poland, Czechia, and Bulgaria (2.7 percent each) will be among the group with the highest growth in 2026.
The “Big Four” (Germany, France, Italy, UK) are recording more moderate growth. At 1.1 percent, the United Kingdom is bringing up the rear among major economies, as inflation is eroding salary increases more sharply than elsewhere.
While countries such as Romania and Ukraine were still struggling with real wage losses in 2025, most of Europe is optimistic about 2026. In Eastern Europe in particular, employees are benefiting from a combination of falling inflation, high productivity, and political pressure to adjust wages.
Related article
While Europe Tightens Its Belt, Hungary Lowers Taxes
The new year brings not only tax cuts but also wage increases.Continue reading
Via MTI, ecb.europa.eu, euronews.com; Featured photo: Pexels
The post Real Wages in Hungary Are Rising Faster Than in Any Other EU Country appeared first on Hungary Today.
Source link
(@laszloan) January 2, 2026
