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V2

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									      LIS variable      V2 Mandatory Employer Contributions
       Contents         Employers' contributions
(national programmes)   VARIABLE NOT INCLUDED IN THE ORIGINAL SURVEY
                        First law: 1928. Current law: 1997 (private pensions), implemented in 1998. Type of program: Social
                        insurance and mandatory individual account system (OASDI);

                        First law: 1891. Current law: 1997. Type of program: Social insurance system (Sickness and
                        Maternity);

     Legislation        First laws: 1900 (agriculture) and 1907. Current law: 1997. Type of program: Social insurance
                        system (Work Injury);

                        First law: 1957. Current law: 1991. Type of program: Social insurance system (unemployment).

                        First law: 1938. Current law: 1998. Type of program: Universal system (family allowances).

      Coverage          All employers.
                        Health Care Insurance Fund (sick pay, sick leave, disability and accident related provisions and
                        pensions, maternity, pregnancy and confinement benefits, curative-preventive care, subsidisation of
                        medicaments and therapical equipments, industrial accidents, occupational diseases)
      Beneficiary
                        Pension Insurance Fund (Old-age pension, widower's pension, orphan's allowance, parental
(financed programmes)   pension, accident related survivor's pension)
                        Labour Market Fund (Unemployment benefits and active and passive tools to promote employment).

                        The base of monthly social security contributions is the employee’s income (wage, premiums,
Basis of assessement
                        overwork payment, that is every kind of income) paid.
                        OASDI: 18% of payroll for social insurance only.
                        Sickness and Maternity : 11% of payroll.
                        Work Injury : See source of funds under Old Age, Disability, and Survivors and Sickness and
        Rate
                        Maternity, above.
                        Unemployment : 3% of payroll.
                        Family allowances : None.
     Collection         By withdrawal.
    LIS variable       V11 Income Taxes
     Contents          Individual income tax
(national schemes)     VARIABLE NOT AVAILABLE IN ORIGINAL SURVEY
     Legislation       1988

      Coverage      All income earners (resident and non-resident).
     Beneficiary    State.
                    Gross (work and unemployment) earnings. Tax for an individual who meets the criteria of a "permanent resident" in Hungary will
                    be calculated on his income in Hungary and abroad. A foreign resident who is employed in Hungary pays tax only on his income
Basis of assessment earned in Hungary.
                    To be considered a Hungarian resident, there are a number of criteria to be met, such as ownership of an apartment, the
                    permanent place of residence of the family and the criterion of spending more than 183 days a year in Hungary.
                    The following forms of income are exempt from tax if they are received by an individual:
                    - interest on deposits, including savings.
                    - interest on government securities and securities of companies.
                    - food vouchers to an employee to a limit of HUF 1,400 per person.
    Exemptions      - prizes and gifts
                    - inheritances
                    - insurance benefits
                    - scholarships, subject to certain conditions
                    When an employee receives a benefit that is not paid in cash, the obligation to pay tax falls on the person providing the benefit.
                       An individual may receive a tax credit in the following circumstances:
                       * credit as a resident - a credit of up to HUF 3,000 per month on condition that the annual income does not exceed HUF 1 million.
                       * Family tax allowance for dependents. Dependents are considered to be those after whom family allowance is received, who
                       receive disability allowance, and an embryo from the 91st day of the pregnancy.
                       Amount of allowance:
                       In the case of 1 dependent 3 000 HUF a month
                       In the case of 2 dependents 4 000 HUF a month
                       In the case of 3 or more dependents 10 000 HUF a month
                       In the case of consorts and common-law wives and husbands, family allowances can be shared because, in this way, more
                       allowance can be claimed.
                       Family allowance can be claimed in full up to 8 000 000 HUF total income. Above this income level, the part of allowance that is
                       above the 20% of the income above the 8 000 000 HUF can be claimed.
                       * Amount to be deducted due to serious disability, 2 000 HUF a month.
                       * Allowance for pension contribution paid on the basis of agreement with the employer. 25% of the amount paid.
                       * Allowance for the amount spent on paying off a loan for buying accommodation. In the case of loan agreements made with a
    Deductions         loan-office after 31 December 1993. The allowance is 40% or 30% of the capital, the interest and the additional costs to be paid
                       off.
                       It is 40% if the interest of the loan received was subsidised by the state; the amount of loans received was not more than 15 000
                       000 000 HUF and the loan was spent on buying newly built accommodation inland. It is 30% if the amount of loans received was
                       not more than 10 000 000 HUF but the conditions to claim 40% have not been fulfilled. The maximum of the allowance is 120 000
                       HUF. The allowance can be claimed either by the debtor or the fellow-debtor but it cannot be shared.
                       The allowance can be claimed by those, whose taxable income (that is types of income to be consolidated, together with the
                       income that is taxed separately, but without income originating from the selling of real-estate) is not more than 4 000 000 HUF. If
                       the income is more than 3 400 000 HUF the amount of allowance is to be decreased by 20% of the amount of income above the 3
                       400 000 HUF level. If one’s spouse or partner in life (who is partner in dept and owner of the real estate, too) is entitled to child-
                       care allowance for more than six months in the tax year, the competence level is 5 000 000 HUF, but if the income is more than 4
                       400 000 HUF the amount of allowance is to be decreased by 20% of the amount of income above the 4 400 000 HUF level.
                       Tax-allowance can be claimed in the tax year when the first payment was made and in another four tax years.
                       * Allowance for payments made towards public interest organisations, the Church, with the aim of assumption of obligations for
                       purposes of public interest, 30% of the amount paid, in the case of prolonged donation an additional 5%, but maximum 50 000
                       HUF. bracket tax rates:
                       income

        Rate           0 – 1 500 000 HUF 18 %
                       above 1 500 000 HUF 38 %

      Tax unit         Individual (spouses are taxed separately).
                       An employer is obligated to deduct, immediately on a monthly basis, the tax payable on an employee's salary. A self-employed
                       person must prepay income tax that will be offset on filing an annual return. The advance payment is determined on the basis of
     Collection        the return made for the previous year. In the event of a new business, the advance will be calculated on the basis of estimates
                       made by the owner of the business.
      LIS variable      V13 Mandatory Employee Contributions
       Contents         Employees' contributions
(national programmes)   VARIABLE NOT INCLUDED IN THE ORIGINAL SURVEY
                        First law: 1928. Current law: 1997 (private pensions), implemented in 1998. Type of program: Social
                        insurance and mandatory individual account system (OASDI).

                        First law: 1891. Current law: 1997. Type of program: Social insurance system (Sickness and
                        Maternity).
     Legislation
                        First laws: 1900 (agriculture) and 1907. Current law: 1997. Type of program: Social insurance
                        system (Work Injury).

                        First law: 1957. Current law: 1991. Type of program: Social insurance system (unemployment).

                        First law: 1938. Current law: 1998. Type of program: Universal system (family allowances).
      Coverage          All employees.

                        Health Care Insurance Fund (sick pay, sick leave, disability and accident related provisions and
                        pensions, maternity, pregnancy and confinement benefits, curative-preventive care, subsidisation of
                        medicaments and theraupical equipments, industrial accidents, occupational diseases)
      Beneficiary       Pension Insurance Fund (Old-age pension, widower's pension, orphan's allowance, parental
(financed programmes)   pension, accident related survivor's pension)
                        Private Pension Fund (private pensions)
                        Labour Market Fund (Unemployment benefits and active and passive tools to promote employment).

                        The base of monthly social security contributions is the employee’s income (wage, premiums,
                        overwork payment, that is every kind of income) paid.
Basis of assessement    Pensions contribution is also paid on unemployment benefits, sick and maternity pay, and child care
                        benefits (GYED, GYES, GYET).
                        OASDI: Social insurance only: 8.5% of gross earnings.
                        Social insurance and mandatory individual account: 0.5% (social insurance) and 8% (mandatory
                        individual account).

                        Sickness and maternity : 4% of gross earnings.
        Rate
                        Work injury : See source of funds under Old Age, Disability, and Survivors and Sickness and
                        Maternity, above.

                        Unemployment : 1% of gross earnings.

                        Family allowances : None.
     Collection         By withdrawal.
       LIS variable       V16 Sickness benefits
        Contents          Sickness benefits (táppénz)
 (national programmes)    Accident sickness benefit (baleseti táppénz) or Work accident sickness benefit
                          First law: 1891.
      Legislation
                          Current law: Act LXXX of 1997 on social insurance and Act LXXXIII of 1997 on compulsory health insurance.
                          Cash sickness benefits: Employees, members of cooperatives, apprentices of skilled labor, the self-employed,
                          and outdoor workers.
       Coverage
                          Accident benefit: employees, members of cooperatives, apprentices in industrial training, artisans, the self-
                          employed, independent farmers, artistic performers, and lawyers.
                                                    The employee must be unable to work because of illness (the employee's inability
                                                    must be certified by the doctor unless the sick leave does not exceed 3 workdays
                               Sickness benefit     and this only once a year) and must be currently insured (or loss of earnings
 Qualifying conditions                              capacity due to illness within 3 days after cessation of insurance).
                           Accident benefit (or    Total disability (incapacity for any paid work) or partial disability (67% loss of working
                          work accident sickness   capacity) due to a work related injury. No minimum qualifying period.
                                 benefit)
                                                   Duration: payable from 1st day of incapacity for up to 1 year (or for length of
                                                   continuous insurance immediately before illness, if less).
                              Sickness benefit
                                                   Amount: 60% of daily average net earnings or 70% if 2 years continuous
       Benefits                                    employment; if less than 1 year continuous insurance, benefit is proportional.
                                                   Duration: payable from 1st day of incapacity for up to 1 year (can be extended to 2
                              Accident benefit     years by Medical Experts Institute).
                                                   Amount: 100% of average net earnings.
Accumulation with other
       income
     Adjustment           Not applicable.
                                                   Both benefits are financed by the Health Care Insurance Fund out of employers' and
                             Financing principle
                                                   employees' contributions (see V2 and V13) plus state subsidy to cover deficit.
       Financing                  Taxation         Count as taxable income.
                             Contributions from    An 8% contribution is levied for pension insurance.
                                  benefits
       LIS variable       V17SR Occupational injury and disease benefits n.e.c.
        Contents          Accident allowance (baleseti járadék) or Work accident annuity
 (national programmes)
                          Act LXXX of 1997 on Persons Entitled to Social Security Benefits and Private Pensions, as well as the
                          Coverage of these Services (törvény a társadalombiztosítás ellátásaira és a magánnyugdíjra jogosultakról,
                          valamint e szolgáltatás ok fedezetéről).
      Legislation         Act LXXXI of 1997 on Social Insurance Pension (törvény a társadalombiztosítási nyugellátásokról)
                          (employment injuries).
                          Act LXXXIII of 1997 on the Benefits of Compulsory Health Care Insurance (törvény a kötelező
                          egészségbiztosítás ellátásairól) (occupational disease).
                          Persons in full- or part-time employment relation, persons working for a fee provided that the income serves
       Coverage           as contribution base, members of co-operatives, self-employed, private entrepreneurs, family members in
                          helping status in private companies with or without legal entity.
                          Available to those whose ability to work diminished by at least 16% caused by a work accident and who are
 Qualifying conditions
                          not eligible to a disability pension (i.e. less than 66% disability).
                          Duration: payable for only 2 years if loss of working capacity is less than 25%; no restriction if higher loss.
                          Amount: it depends on the level of the decrease in work ability, and is established as a percentage of the
       Benefits
                          salary before the accident (between 8 and 30%) from Level 1 to 4 (16-25% reduced capacity to 50-66%
                          reduced capacity).
Accumulation with other    The pensioner can work without limits.
       income

      Adjustment

                             Financing principle     Financed by the Central budget but physically paid by the Health Insurance Fund.
                                  Taxation           Subject to taxation.
       Financing
                             Contributions from
                                  benefits
       LIS variable       V18S2 Disability pensions
        Contents          Disability pension (rokkantsági nyugdíj)
 (national programmes)    Accident disability pension (baleseti rokkantsági nyugdíj) or Work accident-related disability pension
                          Frist law: 1928.
                          Current law: Act LXXX of 1997 on social insurance and Act LXXXI of 1997 on social insurance pensions.
      Legislation         Note: Persons insured before June 30, 1998, or who became insured after this date but before reaching age
                          42, can choose between the social insurance system and the mixed system of social insurance and
                          mandatory individual accounts. The mixed system is mandatory for all others.
                          Employees, members of handicraft and agricultural cooperatives, self-employed entrepreneurs, apprentices
                          of professional training schools, outside workers, artistic performers, lawyers, public notaries, the clergy, and
       Coverage           recipients of unemployment benefits.
                          Voluntary coverage for persons, including independent farmers, not covered by compulsory insurance.
                                                     For a non-accident-related disability pension, the required insurance period
                                                     depends on age at the onset of disability, up to a maximum of 20 years at age 55
                                                     (2 years prior to reaching the age of 22, 4 years between 22 and 24, 5 years
                                                     between 25 and 29, 8 years between 30 and 34, 10 years between 35 and 44, 15
                                                     years between 45 and 54 and 20 years above the age of 55 - or 16 years in a job
                                                     entitling an employee to early retirement).

                             Disability pension      For an accident-related disability pension, there is no qualifying period. There are
                                                     three classes of pension: Class I, 100% loss of working capacity and need for
                                                     permanent care provided by others; Class II, 100% loss of working capacity but no
                                                     need for permanent care provided by others; and Class III, with at least a 67% loss
 Qualifying conditions                               of working capacity.

                                                     The national medical board determines the assessed degree of loss in working
                                                     capacity.
                                                     Must have lost 67 per cent of his/her working potential (50 in case of silicosis)
                                                     primarily due to an employment-related accident, and must not work on a regular
                             Accident disability     basis, or the income must be significantly lower than the income he/she received
                             pension (or Work        before he/she became disabled.
                              accident-related
                             disability pension)     There is no specific pension in case of occupational diseases (medical costs are
                                                     covered by the Health Insurance Fund and a normal disability pension is received
                                                     for incapacity of work).
                                                     Disability pension (social insurance):
                                                     Amount: If younger than age 35, 51% of average monthly earnings with less than 2
                                                     years of contributions (Class III). The pension increases by 0.5% for each
                                                     additional year of service, up to a maximum of 25 years. If aged 35 or older, the
                                                     pension is between 37.5% and 67% of average monthly earnings, depending on
                                                     age at the onset of disability and the length of the insurance period (Class III). A
                                                     Class II pension is paid at a rate 5% higher than Class III; a Class I pension is paid
                             Disability pension      at a rate 10% higher than Class III.
                                                     Duration: The invalidity pension is not replaced by an Old-age Pension but covers
                                                     also the period after the retirement age. Eligibility terminates if the pensioner is no
       Benefits                                      longer invalid, or works on a regular basis and their income for the preceding four
                                                     months was not significantly lower than the income they could have earned in their
                                                     previous occupation prior to becoming disabled.

                                                     Disability pension (mandatory individual account): There is no benefit provision.
                                                     Payable according to the same three classes used in the determination of Invalidity
                                                     Pension:
                             Accident disability
                                  pension            * Class I: 70% of the monthly average earning, minimum: HUF 29,650 per month,
                                                     * Class II: 65% of the monthly average earning, minimum: HUF 26,050 per month,
                                                     * Class III: 60% of the monthly average earning, minimum: HUF 24,800 per month.
                          The amount of disability pension granted prior to January 1, 2009 shall be increased in January of each year
Accumulation with other
                          in line with the rate of pension increase carried out in January (Act LXXXI of 1997, § 29).
       income
                          Benefits are adjusted annually in January according to the average estimated annual change in consumer
      Adjustment          prices and in the national net average wage level.
                                                     Financed by the Pension Insurance Fund (out of employers' and emloyees'
                                                     contributions) for Class I and II disabled, and by the Health Care Fund (out of
                             Financing principle
                                                     employers' and emloyees' contributions plus state subsidy to cover deficit) for
       Financing                                     Class III disabled (see V2 and V13).
                                  Taxation           Not liable to taxation.
                             Contributions from      No contributions.
                                  benefits
      LIS variable        V18S2 Disability allowances
                          Allowances to persons with reduced working ability (megváltozott munkaképességűek járadék) , incl.:
                          - regular social benefit (rendszeres szociális járadék) or regular social annuity
        Contents          - temporary social benefit (atmeneti szociális járadék) or temporary invalidity annuity
 (national programmes)    Disability allowance (rokkantsági járadék) or invalidity annuity
                          Bilindman's allowance (vakok személyi járadék) [no new establishments since 1 July 2001]
                          Allowance for the handicapped (fogyatékossági támogatás) or disability benefit
                          First law: 1990s.
      Legislation
                          Current law: Act LXXX of 1997 on social insurance, Act LXXXI of 1997 on social insurance pensions.
                          Persons in full- or part-time employment relation, persons working for a fee provided that the income serves as
       Coverage
                          contribution base, members of co-operatives.
                                                       Available to those people who have a 50% disability below Class III, who have only half of the
                             Regular social benefit qualifying employment period necessary for being eligible for the disability pension and whose
                                                       rehabilitation employment cannot be assured.
                                                       Payable to those people who reach retirement age within 5 years and have the necessary
                           Temporary social benefit
                                                       contribution payment period.
                           Disability allowance (or Available to those aged 18 or more, if they became 100% disabled before age 25.
 Qualifying conditions
                                invalidity annuity)
                                                       Available tor blind people or those having a seriously limited eyesight and being no older than
                             Bilindman's allowance
                                                       18.
                                                       Payable to those persons above the age of 18 whose severe disability (visual, hearing, mental,
                               Allowance for the
                                                       physical or multiple impairment or autism) is permanent and that are unable to live
                                  handicapped
                                                       independently.
                             Regular social benefit HUF 21,890 per month (2004).
                                                       The annuity amounts to 75% of the old-age pension that he/she would be entitled to upon
                           Temporary social benefit reaching retirement age. However, the annuity can be no less than the minimum amount of
                                                       Regular Social Annuity.
       Benefits               Disability allowance     HUF 27,180 per month (2004)
                            Blindman's allowance     Flat-rate (HUF 6,700 in 1999).
                                                     It is a flat-rate benefit, its amount is 80% of the minimum old-age pension in case of multiple
                             Allowance for the
                                                     disadvantages or a severe disadvantage which makes any kind of self-help impossible; and
                                handicapped
                                                     65% of it in any other cases.
Accumulation with other
       income
     Adjustment           See V19S1b.
                                                     Financed by the Pension Insurance Fund out of emloyers' and employees's contributions (see
                             Financing principle
                                                     V2 and V13).
       Financing                  Taxation           Not liable to taxation.
                             Contributions from      No contributions.
                                  benefits
      LIS variable        V19S1b Employment-related old-age pensions
                          Old-age pension (öregségi nyugdíj)
                          Early Retirement Pension (Korkedvezményes öregségi nyugdíj)
                          Advanced Pension (Előrehozott öregségi nyugdíj)
        Contents
 (national programmes)    Note: The pension system was reformed in 1997, its main elements are:
                          • First Pillar: mandatory, state pension, which is publicly-managed and financed on a PAYG basis.
                          • Second Pillar: mandatory, privately-run pension funds and fully funded. This compulsory pension scheme is
                          administered by several independent pension funds, which are authorised and supervised by the state.
                          First law: 1928.
                          Current law: Act LXXX of 1997 on social insurance, Act LXXXI of 1997 on social insurance pensions and Act LXXXII of
                          1997 on private pension and private pension funds.
      Legislation
                          Note: Persons insured before June 30, 1998, or who became insured after this date but before reaching age 42, can
                          choose between the social insurance system and the mixed system of social insurance and mandatory individual
                          accounts. The mixed system is mandatory for all others.
                          Social insurance system (first pillar): persons in full- or part-time employment relation, persons working for a fee provided
                          that the income serves as contribution base, members of co-operatives.
       Coverage           Private insurance system (second pillar): employees, members of handicraft and agricultural cooperatives, artisans, self-
                          employed, apprentices, independent farmers, artistic performers and lawyers; recipients of unemployment benefits.

                                                     Age 62 (men) with 20 years of service. The retirement age for women is 59 (rising to age 60 by
                                                     2005, age 61 by 2007, and age 62 by 2009) with 20 years of service.
                                                     Partial pension: A partial pension is paid with at least 15 years of service at age 62.
                              Old-age pension        Deferred pension: A deferred pension is possible.

                                                     Second pillar: Age 62 with no minimum period required, but every beneficiary shall reach the
                                                     retirement age in order to be entitled to receive his/her benefit.
                                                     Available to those involved in jobs allowing exemption by age (i.e. work involving increased
                                                     physical load or hazardous to health). Entitlement to pension starts 2 years earlier to
                              Early Retirement       those who have worked in such activities for at least 10 years (men) or 8 years (women), and
                                   Pension           pensionable age is further reduced by 1 year for every additional period of 5 years (men) or 4
 Qualifying conditions
                                                     years (women).

                                                     Paid no earlier than five years before the retirement age to women who were:
                                                     • born after 31.12.1945 and have a service period of at least 38 years,
                                                     • born in 1945 and have a service period of at least 37 years,
                                                     • born in 1944 and have a service period of at least 36 years,
                             Advanced Pension        • born in 1943 and have a service period of at least 35 years, or
                                                     • born before 1.1.1943 and have a service period of at least 34 years.
                                                     Available before pensionable age but from the age of 60 the latest for men who were:
                                                     • born before 1.1.1939 and have a service period of at least 37 years, or
                                                     • born after 31.12.1938. and have a service period of at least 38 years.
                                                     Amount: The pension is based on a percentage of average monthly earnings since 1988 and
                                                     the length of the insurance period; 53% of average earnings is paid with 20 years of service,
                                                     plus 2% for each year between 21 and 25 years, plus 1% for each year between 26 and 36
                                                     years, plus 1.5% for each year beyond 36.
                                                     Average income for calculating the pension is subject to an annual ceiling and is indexed.
                                                     Minimum old-age pension: 23,200 forints.
                              Old-age pension
                                                     Partial pension: A reduced pension is paid with at least 15 years of service at age 62.
       Benefits                                      Deferred pension: The pension is increased by 0.5% for each month of deferral.

                                                     Second pillar: The value of accumulated contributions plus accrued interest. At retirement, the
                                                     insured purchases an annuity; a lump sum is paid with less than 180 months or contributions at
                                                     the time of retirement.
                             Early Retirement        Calculated in the same way as the normal pension.
                                  Pension
                             Advanced Pension        Calculated in the same way as the normal pension.
Accumulation with other
       income
                          First pillar: Annual adjustment in January according to 50% of the predicted increase in the consumer price for that
                          year and 50% of the predicted increase in net average monthly earnings. Corrections are made in November according to
      Adjustment          the annual changes in the consumer prices and the net average monthly earnings.
                          Second pillar: Pensions are adjusted according to a decision of the Pension Fund, taking into account an actuarial
                          assessment.
                                                      Social insurance system: financed by the Pension Insurance Fund out of employees' and
                                                      employers' contributions, plus government subsidy to cover deficit (see V2 and V13).
                              Financing principle
                                                      Private insurance system: financed by private pension funds out of employees' and employers'
       Financing                                      contributions.
                                    Taxation          Not liable to taxation.
                             Contributions from       No contributions.
                                     benefits
      LIS variable        V19S4 Survivors pensions
                          Widow(er)'s pension (özvegyi nyugdíj)
        Contents
                          Orphan's allowance (árvasági ellátás)
 (national programmes)    Accident survivors' pension (baleseti hozzátartozói nyugellátás)
                          Frist law: 1928.
                          Current law: Act LXXX of 1997 on social insurance, Act LXXXI of 1997 on social insurance pensions.
      Legislation
                          Note: Persons insured before June 30, 1998, or who became insured after this date but before reaching age 42, can
                          choose between the social insurance system and the mixed system of social insurance and mandatory individual
                          accounts. The mixed system is mandatory for all others.
                          Spouses, divorced spouses and partners in cohabitation (widower pension), parents (parental pension) or children
                          (orphan's allowance) of persons in full- or part-time employment relation, persons working for a fee provided that the
                          income serves as contribution base, members of co-operatives.
       Coverage
                          Note: the following benefits data relate to the social insurance program only because for the survivor pension
                          (mandatory individual account) there is no benefit provision.
                                                      The deceased was a pensioner or met the qualifying period for an old-age pension or
                                                      disability pension at the time of death.

                                                      The spouse before the death of his/her partner must have lived with the deceased for a year
                            Widow(er)'s pension       without interruption if caring for a child, or 10 years without interruption if not caring for a
                                                      child.
                                                      The deceased spouse must have had accumulated the service time necessary for eligibility
 Qualifying conditions
                                                      for old age or disability pension or must have died as a recipient of old age or disability
                                                      pension.
                                                      Granted to any child under 16 (or 25 if in full-time education) whose parent until his/her death
                                                      has accumulated the service time necessary for old age or disability pension eligibility, or
                            Orphan's allowance        whose parent died as a recipient of old age or disability pension. The orphan’s allowance
                                                      shall be sustained even if the orphan or the orphan’s surviving parent enters into marriage or
                                                      if the orphan is adopted.
                                                      Duration: until death, unless the widow enters into marriage prior to reaching the age of
                                                      entitlemtn for old-age pension.
                                                      Amount: 20% or 50% of the pension which the decesed person was or would have been
                            Widow(er)'s pension       eligible for at the time of his/her death, depending on whether the widow(er) has a pension
                                                      on own right or not.
                                                      Miminum pension: HUF 7,260 per month.
                                                      Duration: until the orphan reaches the age of 16 (if the orphan is a full-time student,
                                                      orphan’s allowance shall be disbursed during the years of study, but until the age of 25 at the
       Benefits
                                                      latest, no limit if disabled).
                                                      Amount: 30% of the sum which was or would have been granted to the deceased as old
                            Orphan's allowance        age, or accident-related disability pension at the time of his/her death for each child; 60% if
                                                      child who lost both parents, or whose surviving parent is disabled or who was abandoned
                                                      and is not supported by the surviving parent.
                                                      Minimum pension: HUF 7,260 for full orphans and HUF 6,920 for orphans of one parent.
                                                      Other eligible survivors (dependent parents and grandparents): 20% of the insured's
                           Other eligible survivors
                                                      pension, if disabled or aged 65 or older.
Accumulation with other
       income
     Adjustment           See V19S1b.
                                                      Financed by the Pension Insurance Fund out of employers' and employees' contributions
                             Financing principle      plus state to cover deficit (see V2 and V13).
       Financing                  Taxation            Not liable to taxation.
                             Contributions from       No contributions.
                                  benefits
      LIS variable        V19SR State old-age and survivors benefits n.e.c.
                          Parental pension (szülöi nyugdíj)
        Contents
                          Marital supplement (házastársi pótlék) [no new establishments since 1 January 1998]
 (national programmes)
                          Health impairment allowance (egészségkárosodási járadék) or health damage allowance
                          First law: 1990s.
      Legislation         Current law: Act LXXX of 1997 on social insurance, Act LXXXI of 1997 on social insurance pensions.
                          Persons in full- or part-time employment relation, persons working for a fee provided that the income serves as
       Coverage
                          contribution base, members of co-operatives.
                                                      Granted to any parent whose child died after accumulating the service time necessary for old
                                                      age or disability pension eligibility, or who dies as a recipient of old age or disability pension, if
                                                      the parent was already disabled at the time of the death of his/her child, or had already
                                                      reached the age of 65, and the child throughout the year preceding the child’s death primarily
                              Parental pension
                                                      supported the parent.


 Qualifying conditions
                                                      Available to those whose monthly own-right pension is not higher than HUF 9,670 and his/her
                                                      spouse filled in the age that gives eligibility to the widow pension or is at least 67% disabled
                             Marital supplement       and the spouse's income is no higher than the minimum amount of the widow pension.


                             Health impairment        Payable to miners who are at least 36% disabled, his/her labour relations ended and he/she
                                 allowance            worked in mines a minimum period established by law.
                                                      The amount of the parental pension shall equal the amount of the widow(er)s’ pension. If there
                              Parental pension        are several persons eligible for parental pension, the parental pension shall be distributed
                                                      among them in equal part.
       Benefits
                             Marital supplement       Flat-rate (HUF 9,000 in 1999).
                             Health impairment        50% of the former salary, but no more than three times the minimum amount of the old-age
                                 allowance            pension.
Accumulation with other
       income
     Adjustment           See V19S1b.
                                                      Financed by the Pension Insurance Fund out of emloyers' and employees's contributions (see
                             Financing principle
                                                      V2 and V13).
       Financing                  Taxation            Not liable to taxation.
                             Contributions from       No contributions.
                                  benefits
       LIS variable       V20S1 Child allowances
        Contents
                          Family allowance (családi pótlék) [changed since 1.1.99]
 (national programmes)
                          First law: 1938.
      Legislation
                          Current law: Bill on Family Allowances, 1998.
       Coverage           All residents with one or more children.
                          Child under age 16 (age 20 if a full-time student) or disabled. [between 1996 and the end of 1998, this was a means-
 Qualifying conditions
                          tested benefit].
                          Family allowances: For the first child, 4,600 forints a month; for two children, 5,600 forints a month per child; and for
                          three or more children, 7,100 forints a month per child.

                          Family allowances (single parents): For the first child, 5,400 forints a month; for two children, 6,500 forints a month per
                          child; for three or more children, 7,600 forints a month per child.
       Benefits
                          For families with a child with a long-term illness or serious disability, 12,600 forints a month per child.

                          For a child in a foster home or living with foster parents, 6,500 forints a month per child.

                          Income-tested cash and in-kind benefits are provided by local government to bring family income up to a minimum level.

Accumulation with other   There is general eligibility for family allowance to every parent raising a child, therefore the income or earnings do not
       income             need to be examined.
      Adjustment          Yearly revision.
                                                      Financed by the Central budget (out of general taxation), but physically paid by the Health
                             Financing principle
                                                      Insurance Fund.
       Financing                  Taxation            Not subject to tax.
                             Contributions from
                                                      None.
                                  benefits
       LIS variable       V21S1 Unemployment insurance benefits
        Contents          Unemployment benefit (munkanélküli járadék)
 (national programmes)
                          First law: 1957.
      Legislation
                          Current law: Act IV of 1991 on the unemployment benefit (as amended on 1994 and 1995).
       Coverage           Wage earners and salaried employees. Self-employed may join voluntarily.
                          Must be under 65 years old for men and 56 for women. Must have at least one year of insured employment
                          during the last 4 years prior to becoming unemployed [200 days are sufficient starting from 1 February 2000],
                          must not be entitled to old-age, disability and accident-related pensions, nor receiving sickness benefits, must
 Qualifying conditions
                          be actively seeking and willing to take up a job, but the competent labour centre is not able to offer a suitable
                          job to him/her, and must be registered and co-operate with labour centre in order to find a job.

                          Formula: 65% of the gross average salary of the previous calendar year, for a maximum of 270 calendar days.
                          Minimum benefit: 90% of the minimum old-age pension (20,880 forints).
       Benefits
                          Maximum benefit: 1.8 times the minimum old-age pension (41,760 forints).

                          Cannot be granted together with old-age, disability and accident-related pensions, nor sickness benefits.
Accumulation with other   An unemployed person may pursue a gainful activity for up to 50% of the statutory minimum wage and
       income             continue to receive his/her initial unemployment benefits; if earnings exceed HUF 11,250/month, the benefit is
                          withdrawn completely [partial unemployment is no more available starting from 1 February 2000].
                          The minimum benefit is adjusted yearly in line with the national minimum wage by the Interest Reconciliation
      Adjustment
                          Council.
                                                   Financed by the Labour Market Fund out of employers' and employees'
                             Financing principle
                                                   contributions (see V2 and V13).
       Financing                   Taxation        Benefits are liable to the full range of income taxation.
                            Contributions from     An 8% contribution is levied for pension insurance.
                                   benefits
       LIS variable       V21S2 (re)training allowance
        Contents          Retraining aid for unemployed persons (átképzési támogatás) [replaced the benefit in cash for
 (national programmes)    young people starting their career in 1996]
       Legislation        1996
        Coverage          All citizens.
                          Unemployed people whose employment can not be assured without retraining. Must be following
 Qualifying conditions
                          vocational training or retraining.
      Benefits            It is established as a percentage of the unemployment benefit.
Accumulation with other
       income
     Adjustment           See V21S1.
                                                   Financed by the Labour Market Fund out of employers' and employees'
                             Financing principle
                                                   contributions (see V2 and V13).
       Financing                  Taxation         Benefits are liable to the full range of income taxation.
                             Contributions from
                                  benefits         An 8% contribution is levied for pension insurance.
      LIS variable        V21SR Unemployment compensation benefits n.e.c.
        Contents          Pre-pension unemployment support [replaced the Pre-pension on 1 January 1998] or pre-retirement unemployment
 (national programmes)    assistance (nyugdíj előtti munkanélküli segély )
                          First law: 1990s.
      Legislation         Current law: Act LXXX of 1997 on social insurance, Act LXXXI of 1997 on social insurance pensions.
                          Persons in full- or part-time employment relation, persons working for a fee provided that the income serves as
       Coverage
                          contribution base, members of co-operatives.
                                                      Available to unemployed persons:
                                                      - who have no more than 5 years left before reaching the old-age pension age;
                                                      - who were recipient of unemployment benefit for at least 180 days [140 from 1 February
                                 Pre-pension          2000], and are no longer entitled to receive it;
                           unemployment support - who completed the age as above within 3 years following the expiration of unemployment
 Qualifying conditions                                benefit;
                                                      - who have the qualifying period required for the old-age pension;
                                                      - if there is no likelihood of finding suitable employment.




                                                Duration: as long as entitlement to old age pension is acquired.
                               Pre-pension      Amount: Its amount is 80% of the minimum old-age pension = HUF 19,760 per month. In 2004
                           unemployment support 5 602 people got this assistance.
       Benefits



                          Pre-pension unemployment support is discontinued if the person engages in a wage earning activity from which his/her
Accumulation with other   monthly revenue exceeds 50% of the statutory minimum wage (except farmers selling their own produce) or if the
       income             qualifying conditions are not met any longer [partial pre-pension is not any more possible starting from 1 February 2000].

      Adjustment          See V19S1b.
                                                    Financed by the Pension Insurance Fund out of emloyers' and employees's contributions (see
                             Financing principle
                                                    V2 and V13).
       Financing                  Taxation          Not liable to taxation.
                             Contributions from     No contributions.
                                  benefits
       LIS variable       V22S1 Wage replacement
        Contents          Pregnancy-confinement benefit (terhességi gyermekágyi segély)
 (national programmes)    Child care fee (GYED) [suspended between 15 April 1996 and 1 January 2000, when it was substantially revised]
                          First law: 1938.
      Legislation         Current law: Labour Code 1992 and Bill on Family Allowances 1998 for pregnancy and confinement benefit. Act No. II of
                          1975 on social insurance and Act No. LXXXIII of 1997 on health insurance for child care fee.
       Coverage           All pregnant employed or self-employed women who have worked for at least 180 days in the 2 years before childbirth.
                          Pregnancy-confinement Currently insured or confinement within 42 days after cessation of insurance, if 180 days of
                                    benefit        insurance during last 2 years.
 Qualifying conditions                             Granted to all mothers with at least 180 days of insurance in the 2 years prior to childbirth for
                                 Child care fee    the purpose of looking after a child after the expiry of maternity leave up the time at which the
                                                   child reaches the age of 6 months.
                                                   Duration: The benefit is payable for the period of maternity leave (4 weeks before and 20
                          Pregnancy-confinement weeks after the expected date of childbirth).
       Benefits                     benefit        Amount: 70% of daily average net earnings in the previous calendar year. In the absence of
                                                   earnings, the current minimum wage is used (53,000 forints).
                                Child care fee        Up to a maximum of 83,000 forints a month, until the child is age 2.
Accumulation with other   When calculating the average earnings serving as the basis of the benefit, every earnings must be taken into account
       income             after which contribution is to be paid.
     Adjustment
                                                    Financed by the Health Care Insurance Fund out of employers' and employees' contributions
                             Financing principle
                                                    plus state subsidy to cover deficit (see V2 and V13).
       Financing                  Taxation          Counts as taxable income.
                             Contributions from     An 8% contribution is levied for pension insurance.
                                  benefits
       LIS variable       V22S2 Birth grants
        Contents          Maternity allowance (anyasági segély) or birth grant
 (national programmes)
       Legislation        Act No. LXXXXIV of 1998 on the support of families.
        Coverage          All citizens.
                          Paid to a mother (or adopting parents) on the condition that the mother completed at least four prenatal
 Qualifying conditions
                          examinations.
       Benefits           A lump sum equal to 225% of the minimum old-age pension is paid after each birth; 300% for twins.
                          Various benefits and allowances for persons who suffered serious health damage, such as allowance for blind
Accumulation with other   people travel discount for disabled persons, etc. do not count as income; recipients of regular social support
       income             may work pert-time, from which they may derive up to 50% of the benefit they receive for that period.

      Adjustment          See V19S1b.
                            Financing principle     Financed by the Central budget but physically paid by the Health Insurance Fund.
                                 Taxation           The benefit is not subject to taxation.
       Financing
                            Contributions from
                                 benefits
       LIS variable       V22S3 Child care leave benefits
        Contents          Child care allowance (GYES - gyermekgondozási segély) or child home care support
 (national programmes)    Child raising support (GYET - gyermeknevelési támogatás) or child-rearing support
                          First law: 1938.
      Legislation
                          Current law: Bill on Family Allowances, 1998.
       Coverage           All citizens.
                                                     Based on general eligibility for any parent raising a child in the household to make
                                                     up for the lost earnings. Available until the child reaches 3 years of age, or 10 years
                                                     of age if the child is permanently ill or seriously disabled. In accordance with the
                             Child care allowance
                                                     Labour Code, employers must grant unpaid leave to the person claiming child care
 Qualifying conditions                               allowance, however, when the child reaches 18 months of age, the parent is allowed
                                                     to work part-time (no more than 4 hours a day) whilst on benefit.
                                                     Available to the parent who raises at least three minor age children where the
                             Child raising support youngest is between 3 and 8 years of age. The parent claiming the benefit is
                                                     allowed to work part-time (no more than 4 hours a day) whilst on support.
                                                     The minimum monthly old-age pension (doubled for twins) is paid up to age 3; until
                             Child care allowance
                                                     twins begin primary education; up to age 10 if disabled.
       Benefits                                      The minimum monthly old-age pension is paid to parents rearing three or more
                             Child raising support children. The benefit is paid when the youngest child is age 3 until he or she
                                                     reaches age 8.
Accumulation with other   No investigation of earnings or income is necessary, in spite of the fact that limited employment is allowed
       income             while receiving the allowance.
     Adjustment           See V19Sb1.
                                                     Financed by the Central budget (out of general taxation), but physically paid by the
                              Financing principle
                                                     Health Insurance Fund.
                                                     Not taxable income as long as no extra wage earning activity is performed, however,
       Financing                    Taxation         as soon as this happens, the earnings thus generated will be taxable together with
                                                     the allowance.
                              Contributions from     Pension contribution must be paid after it as the disbursement period is qualifying
                                    benefits         period for the pension.
       LIS variable       V24S2 Education benefits
        Contents
                          Scholarship (ösztöndíj)
 (national programmes)
       Legislation
        Coverage
 Qualifying conditions

       Benefits
Accumulation with other
       income
     Adjustment
                             Financing principle
                                  Taxation          Scholarships are not liable to taxation.
       Financing
                             Contributions from
                                  benefits          No contributions.
       LIS variable       V25S2 Old-age and disability assistance benefits
        Contents          Old-age allowance (id ő skorúak járadéka)
 (national programmes)    Regular social support (rendszeres szociális segély)
       Legislation        Act No. III of 1993 on Social Administration and Social Assistance
        Coverage          All citizens.
                                                     This is a social assistance scheme to ensure a minimum income during old-age.
                                                     The amount of the benefit is determined by the income of the person (and his/her
                                                     partner or spouse). The allowance is financed partly by state budget (90%) and
                                                     partly by local authorities (10%).
                             Old-age allowance
                                                    * Reach pensionable age (62 years) or more for both men and women, and

                                                    * income combined with his/her spouse or partner is below 80% of the minimum Old-
                                                    age Pension (Öregségi nyugdíj) = HUF 19,760 (€ 80) or - in case of a single person
 Qualifying conditions
                                                    - below 95% = HUF 23,465(€ 96).
                                                    • Working age (18 years or more).

                                                    • lost at least 67% his/her working capacity or entitled to blind person's allowance or
                                                    disability assistance.
                           Regular social support
                                                    and

                                                     • personal income or per capita income of the household no more than 80% of the
                                                     minimum Old-age Pension (Öregségi nyugdíj) = HUF 19,760 (€ 80).
                                                     Supplements actual income to reach 80% of the minimum Old-age Pension
                             Old-age allowance
                                                     (Öregségi nyugdíj) per person for a couple or 95% for a single person.
       Benefits                                      Duration: no limitation in time (payable until the disbursement criteria apply).
                           Regular social support Amount: Supplements actual income to reach 80% of the minimum Old-age
                                                     Pension (Öregségi nyugdíj) per person.
                          Various benefits and allowances for persons who suffered serious health damage, such as allowance for blind
Accumulation with other   people travel discount for disabled persons, etc. do not count as income; recipients of regular social support
       income             may work part-time, from which they may derive up to 50% of the benefit they receive for that period.

      Adjustment          In line with the minimum old-age pension (see V19S1b).
                               Financing principle  Financed by the local government.
                                    Taxation        Not subject to taxation.
       Financing
                              Contributions from    None.
                                    benefits
       LIS variable       V25S3 Unemployment assistance benefits
        Contents          Regular social assistance for the unemployed (munkanélküliek rendszeres szocialis segelyet)
 (national programmes)
       Legislation        Act III of 1993 on Social benefits of unemployed persons.
        Coverage          All citizens.
                          Available to unemployed persons:
                          - whose entitlement to unemployment benefit expired;
                          - in whose family the per capita income does not exceed 80% of the minimum old age pension (i.e.
 Qualifying conditions    HUF 12,280);
                          - who are not eligible to unemployment related or other regular financial benefit;
                          - who cooperate with the labour centre as well as with the local government in finding a job, and are
                          available for work.
                          Duration: up to 24 months.
                          Amount: determined by the settlement's local government, between HUF 1,000 (lowest permissible
       Benefits           amount) and 80% of the minimum old age pension (HUF 12,280); for unemployed persons with
                          some income the monthly amount shall be established so that it should amount to HUF 12,280
                          together with other income of the person.
Accumulation with other   May engage in occasional employment providing earnings up to 50% of the maximum benefit (i.e.
       income             HUF 6,140 /month); if earnings exceed HUF 6,140/month, the benefit will be suspended.
     Adjustment
                             Financing principle    Financed by the local government.
                                  Taxation          Exempt from taxation.
       Financing
                             Contributions from     No contributions.
                                  benefits
      LIS variable        V25S4 Parents assistance benefits
                          Child protection benefits (gyermekvédelmi támogatás) , including:
                          - regular child protection benefit (rendszeres gyermekvédelmi támogatás) [renamed supplementary family allowance
        Contents
                          (kiegészítő családi pótlék) from 1 January 2001]
 (national programmes)
                          - special child protection benefit (rendkívüli gyermekvédelmi támogatás) or irregular child protection benefit
                          School-visiting allowance (iskoláztatási támogatás) [introduced on 1.1.99]
      Legislation         Act No. XXXI of 1997 on the protection of children and the administration of guardianship affairs
       Coverage           All citizens.
                                                      Paid if the income per person in the family does not exceed the amount of minimum Old-age
                           Regular child protection
                                                      Pension (Öregségi nyugdíj) of HUF 24,700 (€ 101), provided that staying in the family is not
                                     benefit
                                                      harmful to the child.
 Qualifying conditions     Special child protection Paid to families with temporarily cash flow problems or facing emergency situations that
                                     benefit          seriously threaten their standard of living.
                                                      Granted to all families with at least one child aged between 6 and 16 (20 if enrolled in a primary
                          School-visiting allowance
                                                      or secondary school).
                           Regular child protection The monthly amount of regular child protection support is 22% of the minimum old age
                                     benefit          pension = HUF 5,434 (€ 22).
                           Special child protection The amount is established by the local government depending on the specific circumstance.
       Benefits
                                     benefit
                          School-visiting allowance
Accumulation with other
       income
     Adjustment           The regular benefit is adjusted in line with the minimum old-age pension (see V19S1b).
                            Financing principle      Financed by the local government.
                                 Taxation            Not subject to taxation.
       Financing
                            Contributions from       None.
                                  benefits
       LIS variable         V25SR Social assistance cash benefits n.e.c.
                            Nursing fee (ápolasi díjat)
                            Funeral aid (temetési segély) alternatively funeral support
                            Transport support for disabled (mozgáskorlátozottak kozlekedésével kapcsolatos támogatás) or transport benefits for disabled people (or
                            transport benefits for persons severely limited in motion)
        Contents
                            Temporary social support - Emergency aid (rendkívüli szociális segély - átmeneti segély) or Temporary benefit
 (national programmes)
                            Raising benefit (otthonteremtési támogatás) alternatively raising benefit for the youth (nest builder program)
                            Advance maintenance payment (gyermektartásdíj megelolegezese) or advance on maintenance payments
                            Subsidy for diabetics (cukorbetegek támogatása) [no new establishments since 1 January 2000]
                            Military family allowance (sorkatonai családi segély)
       Legislation          Various.
        Coverage            All citizens.
                                                        Paid to people who provide permanent care to a disabled relative:
                                                        - to a severely disabled or a permanently ill person under the age of 18;
                                     Nursing fee        - to a severely disabled person in need of increased care;
                                                        - to a permanently ill person above 18.
                                                        This is a means-tested benefit provided by the local government and regulated by a local government decree.
                                                        Somebody may receive a funeral support if he/she provided for the funeral of somebody although it was not
                                  Funeral aid
                                                        his/her duty, or if it was his/her duty but bearing the funeral costs would endanger his/her existence.

                                                        Persons with severe physical disabilities are eligible to transport benefits, if their family's the per capita monthly
                               Transport support        income does not exceed two-and-a-half times of the lowest amount of the old age pension (HUF45.775 in 2001)

                                                        This is a means-tested benefit provided by the local government and regulated by a local government decree. It
                               Temporary social         can be provided to persons whose subsistence is occasionally or long-lastingly endangered. It can be provided
                             support – Emergency        occasionally or monthly.
 Qualifying conditions                aid
                                                        In 2004 the local authorities gave temporary benefit in 630 thousand cases with a total amount of 5 billion HUF .
                                                        To increase own resources to purchase a second-hand flat, the following are entitled to receive raising benefit for
                                                        the youth:
                                 Raising benefit
                                                        1. spouses below the age of 35, partners in life in domestic partnership for one year at the least or singles who
                                                        bring up child(ren) - to increase their own resources required to purchase a second-hand flat minimally rated "with
                                                        modern convenience", provided
                                                        This benefit is paid to the parent who takes care of the child if the child maintenance is temporarily irrecoverable
                                                        by the 42
                             Advance maintenance
                                                        other parent obliged to maintain the child, the person who takes care of the child cannot maintain the child, and if
                                   payment
                                                        the income per person in the applicant's family does not exceed
                                                        three times the current minimum amount of old-age pension.
                              Subsidy for diabetics     Available to those having diabetes and who are older than 70 or are seriously disabled.
                                                        Payable to a disabled relative of enlisted person, if she was supported by the enlisted person before the enrollment
                            Military family allowance
                                                        Amount: determined by the independent local governments in a local government decree and may be no less
                                                        than 80% of the minimum amount of old-age pension. In case of nursing a permanently ill person above 18 years
                                                        of age, the nursing fee is provided by the local government on a discretionary basis, in this case, the amount is
                                                        fully financed by the local government's budget.
                                                        Minimum amount:
                                                        - minimum amount of old-age pension if the claim is based on the own right of the claimant: HUF 24,700 per
                                  Nursing fee           month,
                                                        - 80% of the minimum amount of old-age pension if the claim is based on the discretionary decision of the local
                                                        authority. In this case, the local government can regulate the entitlement conditions, but the household income per
                                                        person taken into account during the judgement of the claim cannot be lower than the old-age pension minimum,
                                                        or 150 per cent of it in case of a one-person household.



                                                        Amount: The funeral benefit cannot be lower than 10% of the locally usual cheapest funeral. The local authority,
                                                        in its local decree, can complete the benefits defined in the Act on Social benefits or can define other kinds of
                                                        cash benefits as well. According to the information available the amount of funeral support varies among local
                                                        authorities. Some examples:

                                                        Large city : The amount of this support depends on the monthly net income per person:
                                                        If the income per person is under 100% of the minimum old-age pension: 12 000 HUF;
                                                        Between 101 – 150% of the minimum old-age pension: 10 000 HUF;
                                                        Between 101 – 200% of the minimum old-age pension: 8 000 HUF.
                                  Funeral aid
                                                        Medium sized town: Amount of the funeral support is 10% of the locally usual cheapest
                                                        funeral. Its cost is 150 000 HUF.

                                                        Medium sized town: Amount of the funeral support cannot be lower than 10% of the
                                                        locally usual cheapest funeral. Its cost is 84 000 HUF. Maximum amount of the funeral
                                                        support is two times the minimum old-age pension.

                                                        Village : Amount of the funeral support is 20% of the locally usual cheapest funeral. Its
        Benefits                                        cost is 150 000 HUF.
                                                        It can be either of (2002 values):
                                                        - 60% of the price of a car, but no more than HUF 300,000;
                               Transport support
                                                        - for the conversion of the car max. HUF 30,000 HUF;
                                                        - basic amount of the transport support: HUF 7,000 - 28,000.
                                                        According to the information available the eligibility criteria for this benefit vary among local
                                                        authorities. Some examples:

                                                        Large city : There are two forms of temporary benefit:
                                                        1) single benefit: maximum two times a year, with a maximum amount of 10 000 HUF.
                               Temporary social         2) periodic benefit: for maximum six months, with a maximum amount of 5 000 HUF / month.
                             support – Emergency
                                      aid               Large city : The periodic temporary benefit can be provided in cash and in kind, for a period of 2-6 months. The
                                                        minimum amount of the benefit is 10% of the minimum old-age pension per month, while its total yearly amount
                                                        cannot be higher than 3 times the minimum old-age pension. The single temporary benefit can be provided in
                                                        cash or in kind, by maximum three times a year.

                                                        Smaller town : The single amount of the temporary benefit can vary between 3 000 – 20 000 HUF, according to
                                                        the amount
                                                        Theneeds. of raising benefit for the youth equals the amount of partial social housing support, which is

                                                         1. HUF 450 thousand after the first child,
                                                         2. HUF 750 thousand after the second child,
                                 Raising benefit         3. HUF 700 thousand after the third child,
                                                         4. HUF 400 thousand after the fourth child,
                                                         5. HUF 100 thousand after each additional child .

                                                   But this support differs from partial social housing support inasmuch as the amount must not exceed 70% of the
                                                   purchase price in the sale contract .
                         Advance maintenance Its amount is equal to the amount of child maintenance decided by the court.
                                  payment
                          Subsidy for diabetics Fixed amount (HUF 100).
                         Military family allowance Minimum amount of the old-age pension (I.e. HUF 15,350).
                        Funeral support: the household income per person taken into account during the judgment of the claim cannot be lower than the old-age
                        pension minimum, or 150 per cent of it in case of a one-person household.
Accumulation with other Temporary Benefit (Átmeneti segély): the household income per person taken into account during the judgment of the claim cannot be
       income           lower than the old-age pension minimum, or 150 per cent of it in case of a one-person household.
                        Raising support : just one direct support - social housing support, partial social housing support or raising benefit for the youth - may be
                        received after the same child .
     Adjustment         Most of the benefits are directly linked to the minimum old-age pension (see V19S1b).
                            Financing principle    Financed by the local government.
                                   Taxation        Not subject to taxation.
      Financing
                            Contributions from     None.
                                   benefits
       LIS variable       V26S2 Near cash housing benefits
        Contents          Dwelling support (lákasfenntartási támogatás) or home maintenance support
 (national programmes)
       Legislation
        Coverage          All citizens.
                          This is a means-tested benefit provided by the local government for a family or individual who lives in a home not
                          exceeding a specified size, provided that there is no income from the use of that home. People can be eligible to this
                          benefit by three rights:
                          a) Normative home maintenance support according to the rules of the Act on Social benefits;
                          b) If they participate in a debt-management procedure;
                          c) Local home maintenance support according to the conditions specified by the local authority in a local decree.
                          A normative home maintenance support is provided if:
                          - the monthly income per person in a household does not exceed 150% the minimum amount of the old-age pension;
                          and
 Qualifying conditions    - the acknowledged costs of home maintenance are equal to 20% or more of the total monthly income of the
                          household.
                          The acknowledged size of the flat is maximum:
                          a) 35 m2 in case of one-person households,
                          b) 45 m2 in two-person households,
                          c) 55 m2 in three-person households,
                          d) 65 m2 in four-person households,
                          e) if more than four people are living in the household then 65 m2 plus 5 m2 for each additional person but maximum
                          the real size of the flat.
                          Minimum amount: HUF 2,500 per month.
                          The amount varies among local authorities. Some examples:
                          Large city: The amount of the home maintenance support varies with income (% of the minimum old-age pension)
                          and the size of the dwelling: the following figures report some examples for different income clases and in case of a
                          35 m2 flat / 35.1 – 50 m2 flat / more than 51 m2 flat:
                          0 – 100%: 4.000 / 5.000 / 6.000 HUF
                          101 – 150%: 3.500 / 4.500 / 5.500 HUF
                          151 – 200%: 3.000 / 4.000 / 5.000 HUF
                          In case of one-person households:
                          201 – 275%: 3.000 / 4.000 / 5.000 HUF
                          Above 70 years of age:
                          201 – 300%: 3.000 / 4.000 / 5.000 HUF
                          One-person households above 70 years of age:
                          201 – 325%: 3.000 / 4.000 / 5.000 HUF
       Benefits
                          In case of people eligible for home maintenance support above pension age, if the income per person is 150 – 200%
                          of the minimum old-age pension: 2.500 HUF, in case of a single pensioner, if the income is 150 – 220% of the
                          minimum old-age pension: 3.500 HUF / month.
                          For families with at least two children:
                          if the income per person is 150 – 200% of the minimum old-age pension: 2.500 HUF, with three or more children
                          additionally 1.250 HUF per child, but a maximum amount of 6.000 HUF.

                          Medium sized town:
                          Support for district-heating: 1-room flat: 3.000 HUF / month, 2-roomed flat: 4.000 HUF, 3-roomed flat: 5.000 HUF
                          Support for gas consumption: 1-room flat: 3.000 HUF / month, 2-roomed flat: 4.000 HUF, 3-roomed flat: 5.000 HUF
                          Support for buying sticks for heating: 1-2 person household: 15.000 / year, 3-4 person household: 20.000 / year, 4 <
                          person household: 25.000 /year
                          Support for electricity: Uniform 2.000 HUF / month.

Accumulation with other   No limitations to the way in which additional income is generated.
       income
     Adjustment           Directly linked to the minimum old-age pension (see V19S1b).
                             Financing principle      Financed by the local government.
                                   Taxation           Not subject to taxation.
       Financing
                             Contributions from       None.
                                    benefits
Sources:

1. "Social security system in Hungary and some of the problems in view of adhesion", Borbely Szilvia
(http://www.konfoderaciok.hu/mszeib/eng/papers/social.html).
2. Social Security Programs Throughout the World, 1999
(http://www.ssa.gov/statistics/ssptw/1999/English/hungary.pdf).
3. OECD Benefits systems and work incentives - 1999 Country Chapters
(http://www.oecd.org/pdf/M00031000/M00031643.pdf).
4. Ministry of Health, Social and Family Affairs web site (http://www.eum.hu/eum/index.html).
4. Information from Tarki.

Wave VI sources:

http://www.ssa.gov/policy/docs/progdesc/ssptw/2004-2005/europe/hungary.html
www.euro.centre.org/data/1156255644_52417.pdf Euromod feasibility study: Hungary (2005 tax-
benefit system)
http://www.magyarorszag.hu/english/keyevents/a_alpolg/a_tulajdonvagyon/a_alllaktam20050916/a_fesz
ekrako20060627.html

								
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