• The new retirement age for the entitlement to old-age pension benefits depends on the date of birth of the employee, as follows:  

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At least 20 years of service is required for the entitlement to old-age pension benefits. Female employees who have 40 years or more service are entitled to the full amount of the old-age pension benefit.

  • Rules relating to collective redundancy have been developed as follows:
    • In the case of the dissolution of the employer (for instance, liquidation and winding-up events) the existing rules relating to collective redundancy are now applicable. This includes, inter alia, 15 days consultation with the representatives of the employees, informing the state employment centre, detailed information on the reasons for the collective redundancy and negotiations on the avoidance of the collective redundancy.
    • For a collective redundancy to take place there must be either:
      • 10 or more employees in an organisation containing between 20 and 100 employees; or
      • 10% or more employees in an organisation containing between 100 and 300 employees; or
      • 30 or more employees in an organisation containing more than 300 employees.

Child – care

  • In Hungary, after the birth of their child parents may choose between two main state benefits: child-care fee (in Hungarian: GYED), and child-care aid (in Hungarian: GYES).
  • In order to be eligible to receive child-care fee, the parent concerned must have paid a social insurance for 365 days within the last two years. If the parent concerned cannot fulfil these criteria he/she may only be entitled to child-care aid. Child-care fee can be provided until the child is two years old. The amount of the child-care fee is equal to 70% of the average wage of the employee capped at 70% of twice the minimum monthly salary defined by law (which is HUF 78,000 approx. EUR 294 from 1 January 2011). During the period of payment of the child-care fee the employee is not allowed to work.
  • Rules relating to child-care aid have changed from 1 January 2011. According to the new rules, child-care aid can be provided for employees for three years from the child's birth. This was decreased to two years by the previous government before the longer term was re-instated from 1 January 2011. The amount of child-care aid is fixed by law (it is currently HUF 28,500 approx. EUR 107). The benefit may only be used by an individual in relation to one child. If the employee receives child-care aid, then he/she cannot work until the child is one year old. After this, the employee is allowed to work but not more than 30 hours per week. Grandparent-employees are also entitled to this benefit, instead of parents. In such case they are not allowed to work at all whilst receiving the aid. Parents (not grandparents) may not be made redundant until the child is three years old, however, they may be dismissed for breach of contract. In practice, employees usually receive child-care fee until the child is two, then they request child-care aid which they receive until the age of three. As explained above, during the first year of the child the employee is not allowed to work at all, irrespective of whether she/he chose the child-care aid or the child-care fee. In practice, employees who are not eligible for child-care fee (ie whose social security relationship is not long enough) receive child-care aid during the first year.
  • Employees intending to adopt children are entitled to both child-care fee and child-care aid. Employees are entitled to child-care aid for a period of 6 months. However, they are allowed to work for up to 30 weekly hours while they receive the aid.
  • Apart from the above-mentioned state benefits, parents raising three or more minors may receive child-education subsidy (Hungarian: GYET) until the smallest child is aged 8. Parents receiving the subsidy are not allowed to work more than 30 hours per week, but they can work without any time-restrictions at home.  

Pension

  • In January 2011 the pension system was reformed in Hungary. From 1997 there had been a mixed system of state pension and mandatory private pension; employees were obliged to pay into both systems. Members of the various private pension funds were requested to choose between the "ordinary" state pension system and the private pension system by 31 January 2011. Those who have chosen to remain in the private system have lost their right to the pension benefit from the state after reaching retirement age. These employees are only entitled to the sum accumulated at the private pension fund. The amounts paid to the private pension funds by individuals returning to the pure state system were transferred to the state pension fund.