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It is already official: as of November 1 – with retroactive effect from January 1 – Hungarian pensions will increase by 1.2 percent ex officio, that is, the pension supplement for inflation higher than expected will be the same .
Pursuant to the Social Security Pensions Act, pensions and other benefits listed in the legislation must be increased ex officio as of November 1.2, 2020, with retroactive effect from January 1, 2020, according to the Hungarian Bulletin Posted Wednesday night.
According to the recent government decree, the benefits to be increased by November 2020 must be paid to the beneficiaries in a larger amount. The amount of the increase for the months of January to October 2020 will be paid ex officio at the same time as the benefit owed for November 2020.
These benefits are subject to a 1.2% increase:
- Retirement,
- widow’s pension,
- parental pension,
- care of orphans,
- pension for injured family members,
- agricultural cooperative old age, incapacity for work, widowhood,
- members of agricultural unions with a greater number of old age, inability to work, widowhood,
- care before age,
- remuneration,
- temporary mining rent,
- annuity of the art of dance,
- disability benefits,
- rehabilitation care,
- accident annuity,
- benefit for the health of miners,
- disability allowance,
- personal allowance for the blind,
- Benefits paid on the basis of a government decree on benefits paid by the Hungarian Public Foundation for Creative Arts,
- mayors civil service grant,
- supplementary disability benefit under the Defense Forces Statute Law,
- additional support for orphans under the Law on the Status of Defense Forces,
- additional family allowance in accordance with the Law on the Legal Status of Defense Forces and the Law on the Employment of Professional Personnel of Law Enforcement Bodies,
- regular cash benefits will be increased under the War Assistance Act,
- spousal allowance,
- spouse’s income supplement,
- a national allocation, and
- increases in relation to certain measures restricting personal liberty or the invalidity of a sentence.
The rate that is now published in the Magyar Közlöny is not surprising, since on September 9 it was discovered that, according to data from the CSO, inflation in August was 3.9 percent, so on average, the Seniors receive around HUF 20,000 in addition to the regular pension.
The reason for the payment is that the 2.8% pension increase rate planned for this year’s budget in the spring of 2019 has finally not reached the rate of January-August 2020 (3.99%) calculated on the base of the inflation basket of pensioners. The Pensions Law links this to the payment if this value is higher than the inflation calculated for all active households. Compensation would also be awarded based on the latter, since this indicator became 3.5 percent on average over 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 pensions are 142.1 thousand HUF, the 11-month rate of the 1.2 percent supplement is 18.8 thousand HUF. The beauty of it is that more than half of the 2.05 million Hungarian pensioners, a total of 1.14 million beneficiaries, have a monthly old-age pension of between 60 and 139.9 thousand florins. Only about 800,000 people are entitled to benefits equal to or higher 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.
According to the pension calendar of the Treasury, the pensions will be transferred on November 11 of this year, but much earlier in December, at the beginning of the month, on day 1. When making the transfer to a bank account, the credit will be made on the day business next to the day of the transfer. Those who receive the pension by mail receive the amount on the day specified in the so-called postal payment calendar.
According to the rules, if the expected annual inflation based on inflation from January to August is less than one percentage point higher than 2.8 percent, a global compensation can be granted, if to a greater extent, a retroactive increase can be granted of the pension. The difference is that in the case of the 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 does not increase, but the The following January pension must be increased by one twelfth of the increase difference. increase before the regular pension increase for next year is implemented, which will be 3 percent according to the 2021 budget law. On the other hand, through the retroactive increase of the pension, the amount of the increase for the months January-October is paid together with the November pension, while the November pension – and of course December – is already received in the increased amount. The latter is happening now.
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