The chapter provides information on old-age and early old-age benefits in Hungary.
In what situation can I claim?
Benefits provided by the statutory pension system are old-age pensions (only above retirement age), 40 years’ eligibility period for women (nők 40 év jogosultsági idővel) and survivors' benefits.
Persons who have reached statutory retirement age and have paid the necessary number of years of insurance contributions are eligible for an old-age pension.
If you are still engaged in gainful employment and you are submitting a pension claim, the termination of this gainful employment is no longer an eligibility criteria for an old age pension. Pensioners who are also self-employed have to pay pensions contributions and the benefit is suspended until the end of the calendar year if their income is 18-times the minimum wage.
What conditions do I need to meet?
Old-age pension (Öregségi nyugdíj)
Persons who have reached the statutory retirement age and have paid the necessary number of years of insurance contributions are eligible for an old-age pension. Retirement age is being gradually increased (by half a year for every age cohort) as of 2010, reaching age 65 in 2022 for those born in 1957 and after. In 2021, people born in 1956 can retire at age 64 and 183 days.
Early old-age pension
The so-called Old-age pension for women with 40 years of eligibility period ('Öregségi nyugdíj nők számára 40 év jogosultsági idővel') is available for women, regardless of their age, who have fulfilled at least 40 years of eligibility period. The eligibility period refers to any period of gainful activity or of receipt of infant care allowance (Csecsemőgondozási díj), child care fee (Gyermekgondozási díj), adoption fee (Örökbefogadói díj) (from 1 January 2020), child home care allowance (Gyermekgondozási segély) (up to 31 December 2015), child care allowance (Gyermekgondozást segítő ellátás) (from 1 January 2016), and child raising support (Gyermeknevelési támogatás), the nursing fee linked to child raising (Ápolási díj), or of the child home care fee (Gyermekek otthongondozási díja). At least 32 years of gainful activity are needed in addition to periods of receipt of the abovementioned benefits linked to child raising; or 30 years of gainful activity are required in the case of receipt of the nursing fee or the child home care fee. The eligibility period is decreased by 1 year after every child raised in the household for women raising 5 or more children with a maximum reduction of 7 years.
The ‘benefits prior to retirement age’ ('korhatár előtti ellátás') are paid to:
- persons who fulfilled the age and service-time conditions required for an advanced pension (Előrehozott öregségi nyugdíj) or an advanced pension with reduced sum (Csökkentett összegű előrehozott öregségi nyugdíj) before 31 December 2011;
- persons who became entitled to the former early retirement pension due to hazardous working conditions (korkedvezményes öregségi nyugdíj) before the starting date of the benefit prior to the retirement age, but no later than 31 December 2012; the possibility for acquiring these periods for entitlement was open until 31 December 2014; the benefit will continue to be paid to persons who acquired entitlement before that date until they reach retirement age;
- persons who became entitled to a miner’s pension (bányász nyugdíj) before 31 December 2011;
- persons who became entitled to an old-age pension for artists before 31 December 2011;
- persons whose employment relationship was terminated before 1 January 2012 and who qualified for an early retirement benefit on that date, subject to certain conditions;
- persons who were entitled to service pensions for professionals of armed forces (szolgálati nyugdíj) before 31 December 2011.
Those entitled to an early retirement pension due to hazardous working conditions can claim a benefit prior to retirement age as many years before reaching the retirement age as the number of years of early retirement they have acquired until 31 December 2012 due to hazardous working conditions or, if the starting day of the benefit is in 2012, until the day preceding the starting day of that benefit.
The 'Premium years programme' is designed to keep the elderly in active employment. The objective of the programme is to let workers in the public sector ease into retirement by allowing them to continue to work part time. Public sector employees within 3 years of retirement who have completed at least 25 years of service can reduce their working hours while receiving 70% of their former salary, until they reach retirement age; this period counts towards social insurance rights. This benefit can be considered as a form of pre-retirement.
What am I entitled to and how can I claim?
Pensions have to be applied for using a standard form. If you live in Hungary, you can submit the form to the Capital and County Government Offices of the place of residence (fővárosi és megyei kormányhivatalok (lakóhely szerinti)) in person, by post or electronically.
In international pension cases, you must submit your application to the Government Office of the Capital City of Budapest Office (Budapest Főváros Kormányhivatal).
The amount of the pension depends on average wage and length of service time (insurance period). The average wage that is used as the basis for calculating the old-age pension is determined, as a general rule, on the basis of the income subject to pension contributions between 1 January 1988 and the date of retirement.
The Hungarian pension system provides for a minimum pension, with a qualifying condition of minimum 20 years of service, of HUF 28,500 per month. If the average contribution base is less than the amount of the minimum pension, the pension will equal 100% of the average monthly wage.
Deferment of retirement
Persons with 20 years of service time who have reached retirement age, whose pension has not yet been granted and who have continued to work for at least 30 days are entitled to a pension increase of 0.5% of the amount of the pension for each supplementary 30-day period. In this case, the final amount of the pension can be more than the average monthly contribution base.
Local governments may provide support to bear the costs of funeral, but there is no obligation for them to do so.
Funeral at public expense: the mayor of the commune, including the locality where the death occurred must ensure that the person is buried at public expense within 30 days of notification of the death, if there is no one to take charge or if the person whose responsibility it is cannot be found or refuses to do so. The cost of the funeral is reimbursed by the commune in which the deceased was last resident.
Forms you may need to fill in
Application forms can be downloaded from the Hungarian State Treasury’s website or picked up from any pension client service.
Know your rights
European Commission publication and website:
Who do you need to contact?
Government Office of the Capital City of Budapest
Budapest Főváros Kormányhivatal
Fiumei út 19/A
postal address: 1916 Budapest