[ad_1]
Along with today’s inflation data, it also revealed how much additional retirees can expect in November.
Today the amount of the pension supplement that pensioners will receive in November of this year was made final: according to the CSO, inflation in August was 3.9 percent, so that the elderly will receive around 20 thousand florins in addition to the regular pension, Mfor.hu calculated for the first time.
The reason for the payment is that the 2.8% rate of increase in pensions planned for this year’s budget in the spring of 2019 did not reach the inflation rate from January to August 2020 (3.99%) calculated on the base of the inflation basket of pensioners. The Pensions Law links this to payment if this value is higher than the inflation calculated for all active households. Compensation would also be awarded based on the latter, as this indicator became 3.5 percent on average in eight months, but according to the law, higher inflation must be taken into account in this case.
According to data from the Hungarian State Treasury, the average national pension is 142.1 thousand HUF, so the 11-month supplementary adjustment rate of 1.2 percent is 18.8 thousand HUF. The beauty of it is that more than half of the 2.05 million Hungarian retirees, a total of 1.14 million beneficiaries, have a monthly old-age pension of between 60 and 139.9 thousand guilders. Only around 800,000 people are entitled to benefits equal to or greater than the national average pension, of which more than a quarter of a million people are entitled to 200-300 thousand florins, in other 54 thousand cases the amount of the benefit exceeds 300 thousand.
Global compensation or retroactive increase in pension?
According to the rules, if the expected annual inflation based on the inflation actually measured for January-August exceeds 2.8 percent by less than one percentage point, a lump sum offset, if to a greater extent, a retroactive pension increase, Nyugdíjguru.hu previously wrote.
The difference between the two procedures is that in the case of lump sum compensation (increase difference), together with the November pension, the increases from January to December are paid in a single amount, so the December pension it does not increase, but the pension for January of the following year increases with the increase. it must be increased by one twelfth before the implementation of next year’s regular pension increase, which will be 3 percent according to the budget law approved for 2021.
However, through a retroactive increase in the pension, the amount of the increase for the months of January to October is paid together with the November pension, while the November pension – and of course that of December – is already received in the increased amount.
And now it’s up to the government to update its inflation forecast. Days have revealed that this will happen sometime in September.
[ad_2]
