A separate chapter is devoted to Budget 2025 bill on the issue of pensions. The document reminds us that the government promised to preserve the purchasing power of pensions in 2010, which it kept and even exceeded. The numbers clearly show that the amount of pensions has more than doubled since 2010, and their purchasing power has improved by more than twenty percent. In 2022, the government restored the 13th month pension in its entirety, and it provides its coverage in the second month of each year, including in February 2025.
According to the bill, the government’s primary goal is to support pensioners, preserve the value stability of pensions, and recognize the highly valued role of women in the pension system.
If we look at the appropriations, we see that the budget spends a total of HUF 7,200 billion on retirement benefits and pension-like benefits. The details reveal that the budget will spend a total of HUF 535 billion on the 13th monthly pension and benefits in 2025.
The government restored the 13th monthly pension from 2021. The decision was originally about the gradual reconstruction, but in 2022, instead of the planned two-week allowance, the beneficiaries received the full monthly allowance. They also received this in the form of 13th monthly benefits, whose benefits must be increased in the same way as pensions. As in 2022, 2023 and 2024, in February 2025, around 2.5 million people will receive an additional benefit equal to a full monthly pension or benefits.
The document also states that, in recognition of the role of women in the family, the government will also provide women with forty years of eligibility in 2025 with the possibility of receiving an old-age pension before the age limit.
The central budget provides nearly HUF 490.6 billion for this in 2025. Furthermore, the state also supports those elderly people who wish to remain active participants in the labor market as retirees. For their part, the income of retired employees will remain exempt from social contribution tax and contributions in 2025.
The bill also mentions that the government implemented a growth turnaround after 2010, which laid the foundation for balanced economic growth, the strengthening of competitiveness factors and the creation of the foundations for economic growth, as well as the creation of new jobs. The rise in the level of wages can also be considered a success from the point of view of pension benefits, since this trend also means that in Hungary, the contribution payments for the ever-higher income of the active can ensure the payment of pensions in an aging society, thereby ensuring the sustainability of the social security pension system.
Minister of Finance Mihály Varga the other day five items highlighted in connection with next year’s budget planning, which also included the value of pensions. He indicated that it was an important goal
- support for families,
- strengthening businesses,
- protecting utility reduction, preserving the value of pensions
- and guaranteeing the physical security of the country.
The head of the ministry also said that after last year’s 18.5 percent pension increase and this year’s 6 percent pension increase, the 2025 budget will also provide the necessary funds. The amount of the increase may be around 3.2 percent, the same as the expected annual inflation. Next February, the state will pay the 13th monthly pension for the fifth time. He added: the government keeps its promise to pensioners even in times of war and protects the value of pensions. At the same time, the budget deficit will decrease to 4.5 percent this year, 3.7 percent next year, and 2.9 percent in 2026, while the public debt ratio is improving every year.
Source: magyarnemzet.hu
