EUROMOD country report : Hungary : 2020-2023.
Date: 2024-06-11
Institutions: Eurostat, Joint Research Centre
Subjects: Hungary, household income, living conditions, maintenance, poverty, report, simulation, software, statistics, tax reform

EUROMOD Country Report - Hungary 

2020-2023 

Hegedűs, P., Szivós, P., Csathó, Á., Tomka, Z. 
Editor: De Agostini, P. 

2024 

 
 
  
 
This publication is an External Study report prepared for the Joint Research Centre (JRC), the European Commission’s 
science and knowledge service. It aims to provide evidence-based scientific support to the European policymaking 
process. The contents of this publication do not necessarily reflect the position or opinion of the European Commission. 
Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that 
might be made of this publication. For information on the methodology and quality underlying the data used in this 
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opinion whatsoever on the part of the European Union concerning the legal status of any country, territory, city or area or 
of its authorities, or concerning the delimitation of its frontiers or boundaries. 

Contact information 
Name: JRC-EUROMOD Team 
Address: Edificio EXPO, c/ Inca Garcilaso 3, 41092 Sevilla, Spain 
Email: jrc-euromod@ec.europa.eu  

EU Science Hub 
https://joint-research-centre.ec.europa.eu 

JRC138014 

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ISBN 978-92-68-15663-6   doi:10.2760/854096  

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Luxembourg: Publications Office of the European Union, 2024  

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How to cite this report: European Commission, Joint Research Centre, Hegedűs, P., Szivós, P., Csathó, Á. and Tomka, Z., EUROMOD Country 
Report - Hungary, De Agostini, P. editor(s), Publications Office, Luxembourg, 2024, https://data.europa.eu/doi/10.2760/854096, JRC138014. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUROMOD  is  the  tax-benefit  microsimulation  model  for  the  European  Union  (EU).  It 
enables researchers and policy analysts to calculate, in a comparable manner, the effects of 
taxes  and  benefits  on  household  incomes  and  work  incentives  for  the  population  of  each 
country and for the EU as a whole. 

EUROMOD  covers the  27  Member  States  and  is  yearly  updated  to  cover the  most recent 
changes  in  countries’ policy  systems.  It  uses  input databases  which  are  also updated on  a 
yearly  basis,  coming  mainly  from  the  European  Union  Statistics  on  Income  and  Living 
Conditions (EU-SILC). The model yearly update is supported by the following Directorate-
Generals of the European Commission: DG EMPL, DG ECFIN, DG TAXUD, DG REFORM, 
DG JRC, DG ESTAT. 

Originally  maintained,  developed  and  managed  by  the  Institute  for  Social  and  Economic 
Research (ISER), since 2021 these responsibilities are taken over by the Joint Research Centre 
(JRC)  of the  European  Commission,  in  collaboration  with  Eurostat and  27  national teams 
from the EU countries. 

The EUROMOD governance structure consists of a Steering Committee, allowing partner 
DGs to monitor the process of the EUROMOD update, and a Scientific Advisory Board to 
monitor and guide the scientific development of the model. 

This report documents the work done in the most recent annual update for Hungary. This 
work was carried out by the EUROMOD core development team, based at the JRC in Seville, 
in collaboration with the national team. 

JRC B2 head of unit: Salvador Barrios 
EUROMOD project leader: Fidel Picos 
EUROMOD coordination assistant: Marta Jędrych 
EUROMOD software developer: Kostas Manios, Bianey Palma 
EUROMOD developer responsible for Hungary: Paola De Agostini 
National team for Hungary: Ábel Csathó, Péter Hegedűs, Péter Szivós, Zsófia Tomka 

The results presented in this report are derived using EUROMOD version I6.0+ EUROMOD 
is continually being improved and the results presented here may not match those that would 
be obtained with earlier or later versions of EUROMOD.  

For more information see https://euromod-web.jrc.ec.europa.eu/ 

 
 
 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

CONTENTS 

1.  BASIC INFORMATION _______________________________________________  4 

1.1 

Basic information about the tax-benefit system, 2020-2023 _________________ 4 

!Unexpected End of Formula 

1.2 

1.3 

1.4 

Social Benefits ______________________________________________________ 6 

Social contributions  ________________________________________________ 16 

Taxes  ____________________________________________________________ 18 

2.  SIMULATION OF TAXES AND BENEFITS IN EUROMOD ___________________  23 

2.1 

Scope of simulation _________________________________________________ 23 

2.2 

Simulated policies and order of simulation  _____________________________ 26 
2.2.1 
Simulated policies _______________________________________________________ 26 
2.2.2  Order of simulation and interdependencies ____________________________________ 26 

2.3 

Policy switches _____________________________________________________ 27 

2.4 

Social benefits _____________________________________________________ 27 
2.4.1  Maternity grant (Bmanc_hu) _______________________________________________ 27 
2.4.2  Maternity allowance (Bmact_hu)____________________________________________ 27 
Child care fee (Bplct_hu) __________________________________________________ 28 
2.4.3 
Child care allowance (Bccnc_hu)  ___________________________________________ 28 
2.4.4 
Child raising support (Bcclt_hu) ____________________________________________ 29 
2.4.5 
Family allowance (Bchnm_hu)  _____________________________________________ 29 
2.4.6 
Regular child protection allowance (Bchmt_hu) ________________________________ 30 
2.4.7 
Social assistance (BSA_HU)  _______________________________________________ 30 
2.4.8 

2.5 

2.5.1 
2.5.2 
2.5.3 

Social contributions  ________________________________________________ 32 
Employee social contributions  (Tscee_hu) ____________________________________ 32 
Employer social contributions (Tscer_hu) _____________________________________ 33 
Self-employed social contributions __________________________________________ 33 

2.6 

2.6.1 
2.6.2 
2.6.3 
2.6.4 
2.6.5 

Personal income tax (tin_hu) _________________________________________ 33 
Tax Unit _______________________________________________________________ 33 
Exemptions  ____________________________________________________________ 33 
Tax base _______________________________________________________________ 34 
Tax schedule ___________________________________________________________ 34 
Tax credits _____________________________________________________________ 34 

2.7 

Itemised tax of small taxpayers (tis_hu) 2020-2023 _______________________ 34 
2.7.1  Assessment unit _________________________________________________________ 35 
Eligibility conditions _____________________________________________________ 35 
2.7.2 
Tax amount ____________________________________________________________ 35 
2.7.3 

2.8  Wage compensation scheme in response to Covid-19 (random_hu, 
yemcomptime_hu, yemcomp_hu, yemadj_hu, yemmyadj_hu) ____________________ 35 
2.8.1  Assessment unit _________________________________________________________ 35 
Eligibility conditions _____________________________________________________ 35 
2.8.2 
2.8.3  Wage compensation level paid by the state ____________________________________ 35 
2.8.4  Duration of scheme ______________________________________________________ 35 
EUROMOD Notes _______________________________________________________ 35 
2.8.5 

3.  DATA ___________________________________________________________  36 

3.1 

3.2 

3.3 

General description_________________________________________________ 36 

Data adjustment ___________________________________________________ 37 

EUROMOD SILC Database (EMSD) __________________________________ 37 

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EUROMOD Country Report – HUNGARY 

3.4 

Imputations and assumptions  ________________________________________ 38 
3.4.1 
Time period ____________________________________________________________ 38 
3.4.2  Gross incomes __________________________________________________________ 38 
3.4.3  Disaggregation of harmonized variables ______________________________________ 38 

3.5 

Updating  _________________________________________________________ 38 

4.  VALIDATION _____________________________________________________  39 

4.1 

Aggregate Validation _______________________________________________ 39 
Components of disposable income  __________________________________________ 39 
4.1.1 
4.1.2  Validation of incomes inputted into the simulation ______________________________ 40 
4.1.3  Validation of outputted (simulated) incomes ___________________________________ 41 

4.2 

4.2.1 
4.2.2 

Income distribution_________________________________________________ 43 
Income inequality  _______________________________________________________ 43 
Poverty rates  ___________________________________________________________ 43 

4.3 

Summary of “health warnings” _______________________________________ 45 

5.  REFERENCES  ____________________________________________________  45 

ANNEX 1. UPRATING FACTORS  __________________________________________  46 

ANNEX 2. POLICY EFFECTS IN 2022-2023 __________________________________  48 

ANNEX 3. VALIDATION TABLES __________________________________________  51 

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EUROMOD Country Report – HUNGARY 

1.  BASIC INFORMATION 

1.1  Basic information about the tax-benefit system, 2020-2023 

•  The Hungarian tax-benefit system is a unified national system where there are no 

• 

policy differences across regions.  
In Hungary, the “tax year” runs from January 1 to December 31. The tax system 
generally changes in January each year. Mainly, benefits changes happen at the 
same time, but modifications may also occur during the year. In January of 2011 
the personal income tax system was changed significantly (see page 21) 

•  Year  by  year,  gradual  increases  on  the  old  age  pension’s  age  limit  had  been 
applied so that pension age raised to 65 years old for both men and women. (see 
Table 1.1.) 

•  The  minimum  school leaving  age  is  16;  dependent  children  are  defined  as  age 
under 16 or under 25 if the child is in full-time education and not married. The 
regulations exclude the people with their own children or cohabiting partner being 
a dependent child. In the case of the regular child protection benefit dependent 
children are defined in the tax unit as aged 17 or younger or 23 or younger if they 
are  in  full-time  secondary  education,  not  married  and  not  cohabiting  or  25  or 
younger if they are in full-time tertiary education, not married and not cohabiting. 
•  For benefit purposes a lone parent is not legally married to anyone and is a parent 
of  a  dependent  child  (regardless  of  cohabitation,  if  he/she  declares  him/herself 
alone). If the parent declares him/herself as not married, he/she has the right not 
to share child related tax credit with the other parent. 
•  The income tax system is an individual (personal) system. 
• 

Income tax withholdings are collected on a cumulative basis, i.e., the system tries 
to ensure withholding the exact amount due in the financial year. Only individuals 
paying tax on trading income (e.g. self-employed people) or whose incomes come 
from different sources must file a tax return for income tax. 

•  The  means-tested  benefit  system  assesses  entitlement  according  to  benefit  unit 
income. The benefit unit is the household - the couple (cohabiting or married) and 
other adult person(s) or single adult plus any dependent children. 

•  The monthly amounts of the minimum wage in the years of interest are: 

2020 
161 000 HUF  167 400 HUF  200 000 HUF  232 000 HUF 

2021 

2022 

2023 

1.1.1  Special support during the COVID pandemic from April 2020 

1, Between March and June of 2020 the employer doesn't pay social contribution 
tax in 11 subsectors (like tourism, catering, event org., sport etc). In these sectors 
the  employee  doesn't  pay  contribution  too,  only  7710  HUF/month  health 
insurance.  In  the  case  of  self-employment:  the  itemised  tax  of  small  taxpayers 
don't pay tax in the same sectors.  

2, if a company is unable to pay its employees because of the epidemic and choose 
to reduce their working hours (and salary accordingly) the state will pay subsidy 

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EUROMOD Country Report – HUNGARY 

of  70  percent  of  the  wage  loss  compared  to  the  original  wage.  The  period  is 
maximum 3 months 

3, Companies working in engineering, research and development field receive a 
40 percent wage subsidy over the next 3 months, which is not depended to part-
time work. This is definitely a company support, however, may ease labour market 
tension in those sub-sectors. (Not simulated in EUROMOD) 

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EUROMOD Country Report – HUNGARY 

1.2  Social Benefits 

Old age benefits 
The pension system was reformed in 1997, to establish three main pillars.  
–  First  Pillar:  mandatory,  state  pension,  which  is  publicly-managed  and  financed  on  a 
PAYG basis. It is financed by employer and employee contributions, supplemented from 
state budget if needed. 
–  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.  It  is  financed  by  employer  and  employee 
contributions. This pillar was practically terminated in 2011, and cumulated funds were 
nationalised. 
–  Third  pillar:  voluntary,  privately-run  pension  funds,  that  are  very  marginal  as  a 
significant reverse change happened in 2011, as the third pillar was de facto eliminated 
(around twenty thousand individuals remained in the system).  

Table 1.1. Retirement age in the past and after 01/01/2010 

Year of birth 

Retirement age 

1945 
1946 
1947 
1948 
1949 
1950 
1951 
1952 
1953 
1954 
1955 
1956 
1957 
1958 
1959 
1960 

Men 
62 
62 

Women 
60 
61 

62 
62 
62 
62 
62 
62,5 
63 
63,5 
64 
64,5 
65 
65 
65 
65 

Retirement year 
Men           Women 
2005 
2007 
2007 
2008 

2009 
2010 
2011 
2012 
2013 
2014-2015  
2016 
2017-2018  
2019 
2020-2021  
2022 
2023 
2024 
2025 

Source: Central Administration of National Pension Insurance; 2011 

Old  age  benefit  (öregségi  nyugdíj):  The  amount  of  pension  depends  on  the  average 
monthly income and the insurance period. 20 years of contribution payment is required 
for a full old age pension, and 15-19 years for a partial pension. The monthly minimum 
pension amounts to 28,500 HUF in each year, it is frozen at that level. 

In 2009 a measure was taken for further increase of age limits of both sexes up to 65 years 
in a mid-term period (see Table 1.1 above). The amount of the minimum pension is also 
a reference eligibility threshold for several social benefits (e.g. regular social support). 

In 2022  and 2023 one month premium old-age pension was  transferred,  so  called 13th 
month pension. 

Early  and  Advanced  Pension  (előrehozott,  korkedvezményes  nyugdíjak):  Early 
Retirement Pension (korkedvezményes öregségi nyugdíj) is available to those involved in 
jobs resulting in increased physical load or jobs  implying hazardous (such as soldiers, 

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EUROMOD Country Report – HUNGARY 

policemen, fire-fighters, etc.) to health. Entitlement to pension starts 2 years earlier for 
those who have worked in such activities for at least 10 years (men) or 8 years (women), 
and retirement age is further reduced by 1 year for every additional working period of 5 
years  (men)  or  4  years  (women)  in  such  conditions.  Advanced  Pension  (előrehozott 
öregségi nyugdíj) is paid no earlier than five years before the retirement age. Those who 
need  no  more  than  5  years  of  service  period  are  entitled  to  the  Advanced  pension  at 
reduced rate (csökkentett összegű előrehozott öregségi nyugdíj) From January 1, 2012 all 
type  of  the  early  and  advance  pensions  were  terminated,  instead  of  these  the  early 
retirement benefits were created. 

Survivors benefits 
Survivors  benefits  is  paid  to  the  surviving  partner  even  if  the  couple  was  not  married 
(either  widowed,  divorced  or  cohabitant),  the  surviving  dependent  children  and  other 
surviving  persons  (i.e.  parents,  grandparents,  and  foster  parents).  This  is  a  not  means 
tested benefit. It corresponds to 60% of the deceased person pension and it is paid even 
though the surviving spouse has a pension by his own. Therefore, the surviving spouse 
can be entitled for a permanent or a temporary widow(er)s pension if his/her deceased 
spouse was a receiver of old age or invalidity pension or got the necessary service period. 
Temporary Widow(er)’s Pension (ideiglenes özvegyi nyugdíj) is paid to the surviving 
spouse  for  12  months,  or  until  the  common  child  reaches  18  years  of  age.  After  the 
termination  of  the  temporary  widow(er)’s  pension,  the  widow(er)  is  entitled  to  a 
Permanent Widow(er)’s Pension. 
Permanent  Widow(er)’s  Pension  (özvegyi  nyugdíj):  The  surviving  spouse/partner  is 
entitled to a permanent widow pension if he/she is above retirement age, or invalid or has 
at least two minor children. The amount of the pension is 50% of the old age pension or 
50% of the invalidity pension to which the deceased person would have been entitled to. 
This is reduced to 30% if the widow(er) receives old age or invalidity pension on his/her 
own right.  
Parental Pension (szülői nyugdíj) is paid to those (grand)parents, who are disabled or 
65  years  old  or  more,  who  were  dependent  upon  their  (grand)child  throughout  the 
preceding  year,  and  whose  deceased  (grand)child  was  entitled  to  old  age  or  invalidity 
pension at the time of death. The amount of the parental pension is equal to the amount 
of the permanent widow(er)’s Pension.  
Orphan’s Allowance (árvaellátás): Orphans having lost one parent are entitled to 30% 
of the deceased parent’s pension as Orphan’s Allowance. Those orphans having lost both 
parents are entitled to 60% of the higher pension of the two parents. Survivors of a person 
died in a work-related accident are entitled to Work Accident-related Survivors’ Benefits. 
They can be entitled to Temporary and Permanent Widow(er)’s Pension, Parental Pension 
and Orphan’s Allowance according to the above rules with the exception that in this case 
the length of the deceased person’s service period is not a condition. 

Sickness benefits 
Two kinds of sickness benefits are paid by social insurance. 
Sick-leave (betegszabadság) is entitled to the sick employee for up to 15 working days 
per calendar year. The employer pays the expenses of sick-leave. 
Sickness Benefit (táppénz) is paid by the Health Insurance Fund for a maximum of one 
year  during  employment  or  for  90  days  after  the  termination  of  employment.  If  the 
previous insurance period is at least two years, the amount of sickness benefit is 70% of 
the  daily  average  gross  earning  over  the  previous  calendar  year,  while  if  the  previous 

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EUROMOD Country Report – HUNGARY 

insurance period is less than 2 years, the amount is 60% of the daily average earnings. 
(These rates was decreased to 60 and 50% on 01.08.2009) 
Parents can be entitled for Sickness Benefit in order to nurse their children as follows: 
– Until the child reaches 1year of age, 
– For 84 days per child if the child is between 1-3 years, 
– For 42 days per child if the child is between 3-6 years and for 84 days for a lone parent, 
– For 14 days per child if the child is between 6-12 years and for 28 days for a lone parent. 

Disability benefits 
In Hungary disability benefits are heterogeneous; there are both insurance-based and non-
contributory benefits among them. The system of the disability benefits was changed at 
the end of 2011. Since 1st of January 2012, the disability benefit was introduced to replace 
the  invalidity  pension,  the  work  Accident-related  disability  pension,  the  temporary 
invalidity annuity and the regular social annuity. 

Invalidity  Pension  (rokkantsági  nyugdíj)  is  due  to  those  persons  whose  working 
capacity has been reduced by at least 67%  and no improvement  is  expected  in his/her 
health for at least 1 year, therefore the recipient does not work regularly or his/her wage 
is substantially lower than before becoming invalid.  
There are three classes of invalidity pension: 
– Class III: at least 67% reduction in working capacity but not totally incapacitated for 
work; 
– Class II: 100% reduction of working capacity but no need of permanent care by others; 
– Class I: 100% reduction of working capacity and need of permanent care by others. 

Eligibility  for  invalidity  pension  starts  from  the  day  on  which  a  medical  committee 
diagnoses the invalidity. 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 longer invalid, or works on a regular basis. Eligibility criteria for invalidity pension 
depend on the age and the length of the insurance period of the insured. The minimum 
invalidity pension for Class III is equal to the minimum old age pension. 

From January 1 2012, the invalidity pension was terminated and replaced by the invalidity 
benefit. The transition between the Invalidity Pension system and the Invalidity Benefit 
system requires a revision of the process mainly based on a medical check-up. No data 
are available yet. 

Other disability benefits are non-contributory benefits and paid by the central budget: 

Invalidity Annuity (rokkantsági járadék) is paid to individuals above 18 years old who 
lose 80% of their working capacity before reaching the age of 25. (This 80% rate was 
changed to 70% from 1st of Januar 2016) Its monthly amount is 33,330 HUF. Those adult 
persons  that  are  not  eligible  for  invalidity  annuity,  but  their  working  capacity  has 
decreased under the minimum 67% and that get a Disability benefit or Annuity for the 
Blind, are eligible for Regular Social Support (Rendszeres szociális segély). 

Temporary  Invalidity  Annuity  (átmeneti  járadék)  and  Regular  Social  Annuity 
(Rendszeresszociális  járadék)  are  due  to  invalid  persons,  whose  working  capacity  is 
reduced by 50%, who cannot find a rehabilitation workplace, and who are not entitled to 

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EUROMOD Country Report – HUNGARY 

old  age,  invalidity  or  work  accident-related  disability  pension,  nor  to  unemployment 
benefit, sickness benefit, work accident sick pay or maternity allowance. The Temporary 
Invalidity Annuity can be paid also to those people who are five years from retirement 
age and have completed the necessary contribution payment period. The annuity amounts 
to 75% of the old age pension that he/she would be entitled to upon reaching retirement  

The Regular  Social Annuity is paid  to those people  who  are eligible  and have  not  yet 
reached retirement age, but have contributed for at least half of the contribution payment 
periods  necessary  for  receiving  an  invalidity  pension.  The  Regular  Social  Annuity  is 
27,000 HUF per month in 2011. From January 1 2012, both of the temporary invalidity 
annuity  and  the  regular  social  annuity  were  terminated,  instead  of  these  the  invalidity 
benefit was introduced and linked to these. 

Disability Benefit (fogyatékossági támogatás) is paid to those persons above the age of 
18 whose severe disability (visual, hearing, mental, physical or multiple impairment or 
autism) is permanent and that are unable to live independently. It is a flat-rate benefit. It 
amounts to 80% of the minimum old age pension in case of multiple disadvantages or a 
severe disadvantage that  makes any kind of self-help impossible; in  any  other cases  it 
amounts to 65% of the minimum old age pension. 

People with severe disabilities can also apply for specific transport allowances: 
•  Transportation  support  (közlekedési  támogatás)  for  transportation  costs  of  disabled 
people; 
• Support for car purchase (személygépkocsi szerzési támogatás); 
• And Support to make a car barrier-free (személygépkocsi átalakítási támogatás). 

Employment injuries and occupational diseases 
Contributory  benefits  for  employed  people  in  case  of  work-related  injuries  or 
occupational diseases. 
Work Accident Sickness Benefit (baleseti táppénz) is payable for a maximum of one 
year with the possibility of an extension for a further year. Its amount is 100 per cent of 
the average income over the previous year. 
Work  Accident  Annuity  (baleseti  járadék)  is  payable  to  a  person  who  lost  his/her 
working  capacity  by  15-67%  as  a  consequence  of  an  employment  injury.  Its  amount 
depends on the degree of invalidity. Its amount is expressed as a percentage of monthly 
average. If the reduction of the working capacity does not exceed 25 per cent the annuity 
is payable for a maximum of two years, while if it exceeds 25 per cent then there is no 
time limit. 
Work Accident-related Disability Pension (baleseti rokkantsági nyugdíj) is paid if the 
capacity for work is more than 67% reduced as a consequence of a work accident, or at 
least 50% reduced due to silicosis. It is paid according to the similar three classes used in 
the determination of Invalidity Pension. The Class I is the 70%; the Class II is the 65% 
and the Class III is the 60% of the monthly average earnings, and the minimum benefit 
amount is changed year by year. This pension was terminated from the beginning of 2012, 
and new special entitlement hasn’t been designed for them yet. They are instead covered 
by invalidity benefit. 

Unemployment benefits 

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EUROMOD Country Report – HUNGARY 

Unemployment  Benefit1,  Job-Seekers  Benefit  (munkanélküli  járadék;  álláskeresési 
járadék):  Employees  and  self-employed  persons  having  lost  their  job  are  entitled  to 
Unemployment  Benefit  if  they  have  been  employed  for  at  least  360  days  during  the 
previous  3  years,  if  they  became  involuntarily  unemployed,  have  no  entitlement  for 
pension, get no sickness benefit and seek a job and co-operate with the labour centre. It 
is paid from employee and employer contributions paid to the Labour Market Fund. From 
2012 the benefit entitlement lasts for a period of maximum 90 days, the amount is equal 
to the 60% of  the  previous wage and the  maximum of the  amount  is  the  100% of the 
minimum wage. 

Table 1.2 Chararcetristic of unemployment benefit 

Eligibility  

Contribution period 

Other conditions 

2020-2023 

Be employed for at least 360 days during the 
previous 3 years 

No entitlement for pension, 
get no sickness benefit and seek a job and 
co-operate with the labour centre 

Eligibility of self-employed 

Payment 

Contribution base 

Yes 

Previous income 

Amount 

Equal to the 60% of the previous wage 

Maximum 

The minimal wage 

Duration 

Maximum period 

90 days 

Subject to 

Taxes 
SIC 

Yes 
Yes, but only the pension contribution (10%) 

Pre-retirement  Unemployment  Assistance  (nyugdíj  előtti  álláskeresési  segély): 
Unemployed persons may apply if they are within five years of reaching retirement age, 
received unemployment benefit for at least 45 days and have exhausted the entitlement 
for unemployment benefit, have a sufficient contribution period for retirement (normally 
20  years),  have  no  prospect  of  finding  a  suitable  job,  and  co-operate  with  the  Labour 
Centre. The amount is the 40% of the minimum wage. If the entitled person’s average 
wage  is  lower  than  this  amount,  the  amount  of  the  pre-retirement  unemployment 
assistance is the 40% of the previous wage. 

Wage compensation scheme Covid-19 (2020) 

1 After 1st of November 2005 the official name of unemployment benefit was changed to ‘job-seekers 
benefit’ (álláskeresési járadék) 

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The wage compensation (EUROMOD variable bwkmcee_s) covers 70% of the worker’s 
gross  earnings  as  well  as  the  statutory  employer’s  social  security  contributions.  A 
reduction of hours is also possible.  

Wage substitution benefit (keresetpótló juttatás): Those employees participating in an 
intensive  training  course  offered  by  the  employment  office  are  provided  with  a  wage 
substitution benefit of an amount between the 60 and 100% of the public work income. 

Public work, fostered workers (közfoglalkoztatás, közfoglalkozattak): After 90 days 
of unemployment, those able to work will lose their benefits unless they agree to do public 
works. Each unemployed who is able to work and is older than 16 can be a foster worker 
and registered job seeker. The amount of the public work income is 81 530 HUF from 
2018 to 2020 and 85 000 HUF in 2021. 

Benefits for parents, adoptive parents and foster parents 

Maternity Allowance (terhességi-gyermekágyi segély): Mothers giving birth to a child 
are entitled to two types of benefits depending on their previous employment situation. If 
they are insured for at least 180 days during the last two years before delivery they are 
entitled to maternity allowance.  It is paid for 24 weeks (4 weeks before and 20 weeks 
after  the  planned  date  of  birth,  or  24  weeks  after  the  date  of  birth,  depending  on  the 
mothers’ choice) and its amount is 70% of the daily average gross earnings of the previous 
year. 

Maternity Grant (anyasági támogatás): Resident women who give birth, had previously 
participated in prenatal care at least 4 times, and have no insurance are entitled to a one-
off lump-sum payment of 225% of the minimum old age pension or 300% in case of twins 
(64,125 and 85,500 HUF from 2017 to 2020). 

Child  Care  Allowance  (gyermekgondozási  segély):  This  is  a  universal  entitlement 
financed by the state budget that provides a flat-rate benefit to parents who stay away 
from  work  to  care  for  their  children  under  the  age  of  3  (under  age  of  10  in  case  of 
permanently  ill  or  severely  disabled  children)  or  for  grandparents  who  care  for  their 
grandchildren aged between 1-3 years in the household of the parent. In case of twins the 
allowance is paid until the children reach the compulsory schooling age (usually 6 years). 
The monthly amount is equal to the minimum old age pension (28,500 HUF). In case of 
twins the amount is doubled. The mothers may have gainful activity after the 1st year of 
age of the child (She may have full time job as well). 

Child Care Fee (gyermekgondozási díj): is a contributory benefit, which is paid after the 
expiry of Maternity Allowance until the child reaches 2 years of age. From 1st of January 
2014 the mothers may have gainful activity after the 1st year of age of the child, and from 
1st of January 2016 the mothers may have gainful activity without limitation (She may 
have full time job as well). The eligibility criterion is at least 180 days of insurance during 
the last two  years before delivery  of the parent who  wants  to  take  care  of  the child  at 
home. Its amount is 70% of the daily average gross earnings of the previous year with a 
maximum of 70% of twice the minimum wage. 

Child Raising Support (Gyermeknevelési támogatás): It is a universal benefit financed 
by the state budget for parents who raise three or more children in their own home, if the 

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youngest child is between 3 and 7 years old. The monthly amount is equal to the minimum 
old age pension, irrespective of the number of children. 

Family Protection Action Plan (Családvédelmi akcióterv) from 1st of July 2019:  The 
action  plan  includes:  1.  interest-fee,  all-purpose  loan;  2.  extension  of  loan  program  to 
support  home  purchase;  3.  subsidy  for  car  purchase  for  large  families;  4.  mortgage 
reduction; 5. exemption from personal income tax; 6. 21,000 new crèche places will be 
established over three years; and 7. childcare leave allowance for grandparents. 

Child benefits 
In Hungary a well-developed child benefit system is in operation consisting of universal 
and means-tested benefits. 

Family Allowance (családi pótlék – nevelési támogatás, iskoláztatási támogatás) is a 
universal benefit financed by the state budget. It is paid to the parent from the birth of the 
child  to  the  termination  of  studies  in  the  compulsory  education  system  (usually  0-16 
years), and then during secondary school education or vocational training of the child (up 
to 20 years of age). According to the provisions of the Act on National Public Education, 
a child becomes eligible for compulsory schooling in the year in which he or she reaches 
the  age  of  six  by  31  August  of  the  following  year  at  the  latest.  A  child  who  is 
recommended by the expert committee is admitted to kindergarten for one additional year 
of  education  and  then  becomes  compulsory.  Its  amount  depends  on  the  number  of 
children  in  the  family,  whether  a  single-parent  family  or  not  and  whether  the  child  is 
disabled. In the month of July double amounts are paid in order to support schooling. 

The monthly amounts of the family allowance differ by number of children and family 
composition as shown below. The amounts were the same for these years. 

2020-2023: 

1 child in the family: HUF 12,200, 
1 child, single parent: HUF 13,700, 
2 children in the family: HUF 13,300 per child, 
2 children, single parent: HUF 14,800 per child, 
3 or more children in the family: HUF 16,000 per child, 
3 or more children, single parent: HUF 17,000 per child, 
permanently ill or severely disabled child in the family: HUF 23,300, 
permanently ill or severely disabled child, single parent: HUF 25,900, 
child in foster home/at foster parent: HUF 14,800. 

Regular child protection allowance (rendszeres gyermekvédelmi kedvezmény): From 
2006 the local government provides regular benefit for the child if the per capita income 
of the family caring for him or her is less than the current minimum old age pension (this 
limit is 130% of the minimum old age pension from 2009) and remaining in the family is 
not against the interests of the child. From 2006 the regular child protection benefit was 
included  into  the  family  allowance.  The  entitlement  for  benefit  in  kind,  related  to  the 
previous regular child protection benefit, has remained (free dining, free school-books) 
but the name of support has changed to regular child protection allowance. For those 
who are entitled to this allowance it is granted a 5 800 HUF support in cash twice a year. 

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Social assistance 
The  specific  forms  of  social  allowances  are  means-tested.  They  are  provided  by  local 
governments,  which  have  some  competence  in  specifying  the  eligibility  criteria.  The 
financing of these benefits comes from the central budget by 90%, while local authorities 
pay the rest. 

Regular social benefit – Active age persons benefit from 2015 (rendszeres szociális 
segély, 2015-től aktív korúak ellátása): This is a social assistance scheme to ensure a 
minimum standard of living. The general regular social benefit was erased from 2015 and 
the main eligible regulation of the regular social benefit changed from 1st of 2015, If:  

-the person is in active age and has low income (total family income < consumer unit * 
92% of the minimum pension) and  

-disabled  

-or dependent child/ren in the household (younger than 14 years old). 

Only one person in a family is entitled to this support. The assessing of the entitlement 
and the amount of the assistance are based on the income projected to the consumer unit 
instead of the previous income per capita. Each member of the consumer unit is weighted 
by a rate which shows the structure and consumption of a family: the first adult member 
of the family and the disabled child’s rate is 1,0, the ratio of the spouse and other adults 
is 0.9 while each child is given a weight equal to 0.7. The amount of support is variable 
and supplements the family’s effective total income to the limit of the entitlement (this 
limit is the 90% of the minimum public workers income). The maximum of the monthly 
support is 46 662 HUF in 2015. 

The amount is equal with the consumer unit multiply 92% of the minimal pension minus 
the total income of the family. The maximum of the benefit is 46.662 HUF/month (equal 
of the 90% of the minimim public workers income). But if somebody in the family gets 
out-of-work  assistance  the  maximum  is  the  46.662  HUF  minus  the  amount  of  the 
assistance minus 22.800 HUF (22.800 HUF = 80% of the min.pension)" 

Out-of-work allowance (foglalkozást helyettesítő támogaás): If the person doesn't fit 
the condition to get regular social benefit, but has no work, and is in working age. The 
amount is equal to the 80% of the minimum pension. 

Nursing  Fee  (ápolási  díj):  Paid  to  people  who  provide  permanent  care  to  a  disabled 
relative: 
–severely  disabled  or  permanently  ill  and  under  the  age  of  18.  At  least  the  minimum 
amount of old age pension is paid if the claim is based on the own right of the claimant. 
The amount paid is higher than the minimum old age pension: in; 2020 – 39,365 HUF; 
2021 – 41,335 HUF, 2022 – 41,335 HUF 2023 – 45,665 and  per month. 

– Those nursing severely disabled person in need of increased care are provided with a 
higher  amount  of  nursing  allowance:  normally  higher  by  30  per  cent  than  the  normal 
nursing allowance. 

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–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. The amount is fully financed 
by the local government's budget and it corresponds to the 80% of the normal nursing fee 
allowance. 

Old age Allowance (időskorúak járadéka): This is a social assistance scheme to ensure 
a minimum income during old age in the absence of an old age pension. The amount of 
the benefit is determined by the income of the person (and his/her partner or spouse). 

Conditions of eligibility: 
– Reaching retirement age and income combined with his/her spouse or partner is below 
80% of the minimum old age pension,  
– Single person, his/her income below 95% of the minimum old age pension, 
– Single person, age above 75 years, his/her income below 130% of the minimum old age 
pension, 

Home  Maintenance  Support  (lakásfenntartási  támogatás):  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 (this limit decreased to  250% of  the minimum  pension 
from September 1 2011); and 
– 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 
– 35 m2 in case of one-person households, 
– 45 m2 in two-person households, 
– 55 m2 in three-person households, 
– 65 m2 in four-person households, 
– 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. 
The minimum amount of the benefit is 2,500 HUF per month. The local authority can 
depart from these minimum rules and can specify more favourable conditions. 

The  regulation  of  this  benefit  changed  at  1st  of  March  2015.  Regarding  this  the  local 
government declare the rules of this benefit (including the amount of the benefit) and not 
the  social  act,  hence  the  benefit  can  be  different  from  local  government  to  local 
government. 

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•  Further benefits (not simulated) 

Advance on maintenance payments (tartásdíj megelőlegezése): This benefit is paid to 
the parent who takes care of a child if the child maintenance is temporarily irrecoverable 
by/from the other parent obliged to maintain the child. If the person who takes care of the 
child cannot maintain the child and the income per person in the applicant's family does 
not exceed three times the current minimum amount of old age pension the caring parent 
is entitled to advance maintenance payment. Its amount is equal to the amount of child 
maintenance decided by the court. 

Irregular Child Protection Benefit (rendkívüli gyermekvédelmi támogatás) is paid to 
families  with  temporarily  cash  flow  problems  or  facing  emergency  situations  that 
seriously  threaten  their  standard  of  living.  The  amount  is  designated  by  decree  of  the 
respective local government.  

Debt-management  Benefit  (adósságcsökkentési 
the  home 
maintenance support, people with overdue debts can receive a cash benefit, transferred 
by local governments to the creditor. The amount of debt-management benefit is the result 
of an agreement between the local authority, the creditor and the beneficiary. The other 
pillar is debt management counselling, which is mandatory for beneficiaries. 

támogatás):  beside 

Public Health Benefit (közgyógyellátás): Socially disadvantaged people may receive a 
Public  Health  Card  by  which  they  can  obtain  specific  medicine  and  therapies  free  of 
charge. 

Temporary Benefit (átmeneti segély): This is a means-tested benefit provided by the 
local  government  and  regulated  by  a  local  government  decree.  It  can  be  provided  to 
persons  whose  subsistence  is  occasionally  or  long-lastingly  endangered.  It  can  be 
provided  occasionally  or  monthly.  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% of it in case of 
a one-person household 

Funeral Support (temetési segély): 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 his/her duty, 
or if it were his/her duty but bearing the funeral costs would endanger his/her existence. 
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. The 
amount  of  the  funeral  benefit  cannot  be  lower  than  10  per  cent  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. 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. 

Examples of other social benefits provided by local governments: 
• Home renting support (lakbértámogatás), 
• Interest-free social loan (kamatmentes szociális kölcsön), 
• Meals support (étkezési támogatás), 

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• Local transportation support (helyi utazási támogatás). 

1.3  Social contributions 

In Hungary, social insurance can be divided into two large categories: pension scheme 
and health insurance. 
Since 1 January 1998, the Hungarian pension scheme has been financed jointly by the 
compulsory  pension  scheme  of  social  insurance  and,  in  addition,  by  private  pension 
insurance (till 2011). It is also possible to complete a social insurance pension through 
voluntary pension funds. In the case of voluntary pension funds, payment is unsolicited, 
there are no provisions of the law concerning the minimum or maximum amount, and the 
minimum amount is defined by the statutes of the funds. Membership fees can be assumed 
by the employers. 
In this sense, health insurance is not financed jointly, but through voluntary health funds, 
beside the compulsory social insurance, there is still an opportunity to obtain additional 
health provision.  
Participation in the system of social insurance is compulsory, if legal relations provided 
by  the  law  are  established,  the  compulsory  contractual  insurance  relations  come  into 
being.  Both  employers  and  employees,  and  also  joint  and  private  companies,  and 
entrepreneurs have to make contributions both to the pension insurance and to the health 
insurance funds. The amount of contribution payable by both parties is calculated on the 
basis of the gross – before taxation – wages, income. 

Employee social insurance contribution 

The rate of contribution payable by employees, pension social insurance is 10%. The pensioners 
who have employee income at the same time have to pay pension insurance contribution too. 

The health insurance contribution was separated to ’in-kind’ and ’monetary’ part. The monetary 
part of the employees’ health insurance contribution is 3% and the in-kind part is 4 % from 2015 
to 2018. The pensioners who were working and had old-age pensions too had to pay the in-kind 
part of the health insurance contributions. 

Pensioners employed ‘in their own right’, pay neither pension nor health contribution. If 
a pensioner, apart from the pension, receives income subject to contribution payment (as 
an employee or an entrepreneur), contributions payable by employees do not need to be 
paid,  but  he/she  is  still  obliged  to  fulfil  obligations  of  employers.  (Reasonably,  as  an 
employee the employer and as a partner or private entrepreneur, the entrepreneur.) 

From 2014 a new SIC allowance was established. If the tax payer has lower income and can't use 
the whole amount of the family tax allowance (see below), she/he has a deduction in the amount 
of  the  SIC  by  the  16%  (from  2015:  15%)  of  the  remainder  family  tax  allowance.  First,  the 
remainder tax allowance cuts down the health insurance contribution (7% of the income), and 
secondly this deducts the pensions insurance contribution (10% of the income). The family SIC 
allowance can be shared between the two parents (as the family tax allowance). 

Employer social insurance contribution 

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From 2012 employer part of the health insurance and pension insurance (with the labour market 
contributions) were erased, instead of these 27 % social contribution tax was introduced, this rate 
was decreased in 2020 to 17,5%; 15,5%  in 2021; 13% in 2022 and 2023. 

Self-employed social insurance contribution 

Joint and private entrepreneurs are obliged to pay both the 27% social contribution tax 
(17,5%  in  2020,  15,5%  in  2021;  13%  in  2022  and  2023)  by  employers  and  the  10% 
pension  contribution  payable  by  employees.  Joint  and  private  entrepreneurs  are  also 
obliged to pay the employee’s part of the health insurance contribution. 
In  the  case  of  joint  businesses  and  entrepreneurs,  health  insurance  contribution  is 
calculated on the basis of the income paid to the entrepreneur as personal agency, but at 
least the amount of the minimum wage. In the case of private entrepreneurs, contribution 
is calculated on the basis of the entrepreneurial withdrawal, in the case of presumptive 
taxpayers, the presumptive income tax is based on at least the amount of the minimum 
wage.  Joint  and  private  entrepreneurs  are  exempt  from  paying  contributions  if  they 
receive sick-pay, maternity allowance, child-care allowance, child rising support, child-
care fee, nursing fee, except if they personally continue their activities during this time. 
Contributions are not to be paid for tax-exempt payment in kind. 

The following table shows the changes of the pension and the health insurance contribution year 
by year. 

Pension insurance contribution from 2020 to 2023 

Pension  insurance 
contribution 
(nyugdíjjárulék) 

Employees 

2020 

10% 

Employers 

* 

Upper limit 

-** 

2021 

10% 

* 

-** 

2022 

10% 

* 

-** 

2023 

10% 

* 

-** 

Self 
employment 

10%+ * 

10%+ * 

10%+ * 

10%+ * 

* Replaced by the social contribution tax 
** Upper limit erased at 1st of January 2013 

Health insurance contribution from 2020 to 2023 

insurance 

Health 
contribution 
(egészségbiztosítási 
járulék) 

Employees  In-kind 

2020 
4% 

2021 
4% 

2022 
4% 

2023 
4% 

Monetary  3% 

3% 

3% 

3% 

Employers  In-kind 

* 

Monetary  * 

* 

* 

* 

* 

* 

* 

Self employment 

7% + *  7% + * 

7% + *  7% + * 

*Replaced by the social contribution tax  

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Other income related contributions 

Employee  contribution  is  calculated  on  the  basis  of  gross  wages  received  from  the 
employer. Exempted are those who receive or become entitled to receive old age pension, 
disability  pension  or  pension  for  work  accident  related  disability,  while  being  in 
employment. Employees are obliged to pay the contribution. Its rate is 1,5% since 1st of 
September 2006. The pensioners who are employees at the same time do not have to pay 
this employee contribution. 
Employer contribution is calculated on the basis of the gross wage – before taxation – 
accounted  and  paid  to  the  employee  with  regard  to  his/her  employment,  including 
severance pay, jubilee reward, fees paid during the time of sick-leave, taxable payment 
in kind, meal contribution, holiday contribution and 25% of the tax payable for a company 
car provided with regard to employment. The employer contribution is payable by the 
employer. 
Entrepreneurial contribution is paid by joint business on the basis of the income paid 
to the entrepreneur with regard to his/her personal assistance, by private entrepreneurs on 
the  basis  of  the  entrepreneurial  withdrawal  and  by  private  entrepreneurs  subject  to 
presumptive  taxation  on  the  basis  of  the  minimum  wage.  The  minimum  of  the 
contribution  base  is  always  the  amount  of  the  minimum  wage  provided  by  the  law. 
Exempted are those who receive or become entitled to receive old age pension, disability 
pension or pension for work accident related disability and those who are employed at the 
same time and work at least 36 hours a week.  
From  2010  these  separate  contributions  (the  employee,  the  employer  and  the 
entrepreneurial) were erased; in place of them, employers pay 1%, employees pay 1,5% 
and the self-employed pay 2,5% of the contribution base; these contributions have been 
called ‘labour market contribution’ (munkaerő-piaci járulék). From 2012 the employer 
part of the labour market contributions was erased, and this is now part of the 27 % social 
contribution tax (see above). 
 Vocational  training  contribution  is  payable  by  every  economic  society  and  private 
entrepreneur, except or flat-rate tax. Contribution is calculated on the basis of expenditure 
on wages, its rate is 1.5%. 

1.4  Taxes 

Direct taxes 
Personal income tax (személyi jövedelemadó): The system of personal income tax was 
introduced in 1988. The system in itself has basically remained unchanged but several 
simplifications were carried out over the years (out of the eleven originally introduced 
tax rates, by 2012 there remained only one). However, it is still typical of the system that 
types of incomes  are differentiated in detail; there are tax credits of several kinds and 
members of certain sectors, primarily those working in the field of agriculture (primary 
producers, small-scale producers, assisting family members) enjoy differential treatment. 
The personal income tax is the second most important source of revenue for the budget. 
Every active citizen is obliged to file a tax return at the end of the tax year, which can be 
done in three different ways: either by self-assessment or, if one has a workplace and has 
other income only from very few and well-defined sources, one can ask the workplace to 
fill in and file a tax return for him/her, and thirdly tax authority fills the form. As it will 
turn out below, the Hungarian tax regulations are rather complex, so there is an option of 
filling in a detailed data sheet and asking the tax authorities to calculate the amount of tax 

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to be paid. Small-scale producers who work in the field of agriculture and whose yearly 
revenue is between 600,000 and 3,000,000 HUF can also make a simplified declaration 
of tax return, which substitutes for the filing of the personal tax return. 
Incomes  to  be  consolidated  are  taxed  according  to  the  tax  table.  Tax  credits  are  only 
demandable  on  the  basis  of  the  amount  of  tax  calculated  this  way.  Incomes  taxed 
separately can be divided into two groups. In the first group there are income sources of 
different kinds, in this case separate tax rates apply. In the second group, we talk about 
flat rate taxation. This is only a choice in the case of certain activities and even then, there 
are further conditions to be fulfilled.   
The simplified business tax (EVA), as a form of taxation was announced on 1 January 
2003 and started from 2004. EVA addresses small-scale enterprises, not only with the 
aim of reducing tax burdens but also in order to simplify  administration. This form of 
taxation  provides  an  opportunity  for  the  legal  transformation  of  revenues  into  freely 
utilizable income, it is easy to calculate and there are relatively less rates and taxes to be 
paid. The simplified business tax possibility was erased by the end of 2019. 
From  2013  a  new  form  of  tax  was  introduced  for  the  smaller  enterprises,  this  is  the 
‘itemised  tax  of  small  taxpayers’  (KATA),  which  one  is  more  popular  between  the 
taxpayers  year  by  year  (about  the  KATA  regulation,  see  the  details  below).  On  1 
September 2022, there were significant changes in the KATA regulation and the majority 
of small taxpayers can’t choose this form of taxation any further. 

Income-types to be consolidated: 
– Wage income from employment 
–  Social  security  benefits  with  regard  to  employment,  like  sick  pay,  child-care  fee, 
maternity allowance 
– Income originating from casual work 
– Income received in return for foreign service 
– Unemployment benefit, incentive benefit for job seekers, complementary wages, wage 
substituting benefit, work accident allowance,  compensation substituting wage income 
from employment 
–  Income originating  from  being  an  elected functionary, a member of Parliament  or  a 
Local Government, subsidies received in connection with these activities (meal, clothing, 
holiday,  housing  contributions),  taxable  insurance  fees  due  to  these  activities,  income 
originating from securities. 
– Income originating from refund of expenses above the amount of certified expenses. 
– Part of severance pay (for the tax year or earlier) concerning the year 2005. 
– Withdrawal of a private entrepreneur 
– Income gained by an assisting family member in a joint business. 
– Income originating from activity of agricultural primary producers. This kind of income 
needs to be declared only if it is more than 600,000 HUF. 
–  Income  originating  from  intellectual  activities;  that  is  income  received  for  a 
composition  that  enjoys  legal  protection  of  copyright  and  that  was  earned  outside  of 
employment or enterprise. 
–  Other  income  originating  from  independent  activities  (not  carried  out  as  a  private 
entrepreneur), not intellectual income. 

The tax base is made up of the incomes to be consolidated. Tax is calculated on the basis 
of the tax base. In 2013 a fixed flat tax system was introduced with a tax rate of 16% of 
the tax base, this rate was changed to 15% from 2016. 

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Tax credits: 

Family tax allowance (from 2011) (családi adókedvezmény): In 2011 the regulation of 
the family  tax  credit was changed  transforming the  family tax credit into a family tax 
allowance.  In  practice,  while  until  then  the  family  tax  credit  was  deducted  from  the 
income tax, from 2011 the tax base is reduced before calculating income tax. At the same 
time the amount of the tax allowance changed too, and amounts are: 62.500 HUF monthly 
per  child  if  there  are  one  or  two  dependent  children  in  the  family;  and  206.250  HUF 
monthly per child if there are three or more dependent children in the family. In 2016 the 
amounts changed to 66.670 HUF monthly amount per child if there is one dependent child 
in the family; 83.330 HUF monthly amount per child if there are two and 220.000 HUF 
monthly amount per child if there are three or more dependent children in the family. In 
2018  and  2019  only  the  ‘two  children  category’  changed  to  116.670  HUF  (2018)  and 
133.330 HUF (2019 - 2021) monthly amount per child if there are two dependent children 
in the family. From 2020 women with 4 children don't pay personal income tax. 

No negative  tax allowance is  allowed. (The possibility  of sharing between  the parents 
remained.) From 2014 if the tax payer has lower income and can't use the whole amount 
of the family tax allowance, she/he has a deduction in the amount of the SIC by the 16% 
(15% from 2016) of the remainder family tax allowance. 

Special family personal income tax  refund  2022:  All parents with children who  are 
entitled to family allowance are entitled to a tax refund. The tax refund for 2021 is for the 
following activities: 

    - tax on self-employment, non-self-employment and other income, 
    - a quarter of the KATA tax  

up to the tax content of the average annual wage calculated on the basis of the data for 
December 2020. Individuals have already been able to benefit from a number of personal 
income tax reliefs, which will continue to be available. As a refund the amount of personal 
income tax on the consolidated tax base remaining after deduction of the benefits claimed. 
There is no refund of tax on separately taxable income (e.g. sale of a dwelling, dividends, 
stock exchange gains). Until 15 February 2022, the NAV will automatically pay out the 
refund to parents whose employer deducts income tax or ecot from their wages during the 
year. 

Tax allowance for young people under 25 (from 2022): From 1 January 2022, young 
people under 25 will benefit from a new tax base reduction: they will not have to pay 
personal income tax up to a certain amount on their income included in the consolidated 
tax base as defined by law. The maximum deduction from the tax base in 2022 is HUF 
433 700 per month, which represents a tax saving of HUF 65 055. For the whole tax year, 
the amount of the reduction can reach HUF 5 204 400, which means that a young person 
under 25 will pay HUF 780 660 less tax per year. 

Tax benefit for mothers under 30 (from 2023): The tax benefit is granted to a mother 
aged  25  or  over  and  under  30  years  old  who  is  entitled  to  a  family  tax  allowance  for 
pregnancy in 2023 or/and has a child in 2023 or adopts a child in 2023. A mother is not 
entitled to the benefit in 2023 if she gives birth at the age of 23, or has a child aged 2 and 

20 

 
 
 
 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

4, or gives birth to her third child in May at the age of 31. The benefit has a maximum of 
499 952 HUF per month in 2023, which means a tax saving of HUF 74 993. 

Tax  credit  for  serious  disability:  Persons  with  a  disability  level  of  at  least  67%  are 
eligible  for  tax  credit  for  serious  disability.  The  personal  income  tax  amount  to  be 
deducted due to serious disability is the 5% of the minimum wage per month. 

Non-simulated tax credits: 
Although the detailed system of tax credits was considerably simplified at 2007, most of 
the  items  were  terminated,  but  several  allowances  stay  in  the  tax  system.  The  most 
important are: allowance after the amount paid to a voluntary health fund; allowance 
after the income originating from intellectual activities; allowance for the amount spent 
on paying off a loan for buying accommodation; allowance for amounts paid towards 
tuition  fees  in  higher  and  adult  education;  allowance  for  primary  producers  in 
agriculture: this allowance is the amount of tax payable for the income raised by way of 
primary production or small-scale production; allowance for payments made towards 
public interest organisations, the Church, with the aim of assumption of obligations for 
purposes  of  public  interest,  allowance  for  payments  made  towards  public  interest 
organisations of high priority. 

Itemised tax of small taxpayers (kisadózó vállalkozások tételes adója): This form of 
taxation  was  announced  on  1st  of  January  2013.  The  itemised  tax  of  small  taxpayers 
(KATA) as a form of taxation, can be chosen by private entrepreneurs, limited liability 
companies,  etc.  when  the  taxpayer  expected  income  does  not  excide  6,000,000  HUF 
(12,000,000 HUF from 2017). If the weekly working hours is at least 36 hours, the tax 
amount is 50,000 HUF per months; if the self-employment works less than 36 hours per 
week,  the  tax  amount  is  25,000  HUF  per  months.  From  2021  the  tax  changed 
significantly: Over net 3 million HUF income per year per 1 specific partner, the tax rate 
is charged to 40% tax of the net income. 

On 1 September 2022, there were significant changes to the KATA, with the majority of 
small taxpayers no longer choosing this form of taxation. 

– 

Separately taxed income types are the following: 
–  Flat-rate taxation income of private entrepreneurs: In the case of flat-rate taxation, the 
accountable cost ratio is fixed, the ratio itself is defined by the law, depending on the 
type  of  activity  and  it  varies  between  40-87%.  Tax  is  payable  for  the  revenues 
remaining after the cost ratio was deducted. 
Income  of  private  entrepreneurs,  liable  to  entrepreneurial  personal  income  tax  and 
entrepreneurial dividend tax. The personal income tax of entrepreneurs is 16% of the 
entrepreneurial tax base. The entrepreneurial tax base basically means the revenues 
remaining after costs were deducted but the exact system of rules is rather complex. 
The  entrepreneurial  dividend  base  is  the  entrepreneurial  income  remaining  after 
taxation.  Tax  payable  for  the  entrepreneurial  dividend  base  is  20%  up  to  30%  of 
entrepreneurial withdrawal; above that it is 35%. 

–   Flat-rate taxation income of small-scale agricultural producers. The accountable cost 
ratio is fixed, depending on the type of activity; it is between 80-94%. The amount 
of tax payable is the same as in the case of flat-rate tax of private entrepreneurs. 

21 

 
 
 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

–  

–  

–  

–   Flat-rate taxation income of hosts receiving paying guests The tax amounts to 32,000 
HUF a year, out of which 80% is payable in the form of personal income tax and 
20% as flat-rate health contribution. The amount of tax payable does not depend on 
whether guests were received throughout the year or only part of the year. 
Income originating from the sale of real-estate. Tax rate is 20% and it does not need 
to be declared, if the real-estate was obtained before 1988, or if there was no income 
originating from it. Allowance for getting an apartment is the duet of those who buy 
or  build  real-estate  inland  for  themselves  or  for  near  relatives,  either  within  12 
months  before  the  sale  or  within  60  months  afterwards.  The  amount  spent  for 
purchasing it can be deducted from the income originating from sale. 
Income originating from the sale of movable property. Tax rate is 20%., however, if 
the income originating from the sale of movable property is not more than 200 000 
HUF, the sale is exempt from taxes. If it is more than 200 000 HUF, it needs to be 
declared but 40 000 HUF can be deducted from the tax. 
Income originating from life-annuity contract. Tax needs to be paid if the life-annuity 
contract was made after 1996 and life-annuity is received without compensation. The 
tax  rate  is  35%.  It  is  tax-exempt:  1)  if  the  contract  ensuring  support  for  life,  the 
testamentary contract or the life-annuity contract was made with a private person; 2) 
if the contract ensuring support for life, the testamentary contract or the life-annuity 
contract was signed between a pensioner and an organisation financed by the state 
budget or a local government; 3) if life-annuity was received in return for real estate, 
right of property or movable property. 
Income originating from rate of exchange gain. Tax rate is 25%. 
Income originating from securities lending. Tax rate is 20%. 
Income raised by right of dividends Tax rate is 20% up to 30% of the financial deposit 
of the person entitled to receive the dividend. Above that it is 35%. 
Income raised by right dividend, taxable abroad. Tax rate is 20%. Tax justifiably paid 
abroad can be deducted, but if Hungary does not have a convention ruling out double 
taxation, at least 5% of the tax has to be paid in Hungary. etc. 

–  
–  
–  

–  

Tax  liability  is  the  total  of  the  amount  of  tax  payable  for  incomes  to  be  consolidated 
reduced by allowances and the amount of tax payable for incomes taxed separately. Tax 
return does not need to be filed by those who only have tax-exempt income. Tax-exempt 
incomes are the following: 
– pensions 
– severance pay received with regard to the cessation of the right for widow’s pension 
– supplementary income 
– income substitution for the unemployed 
– subsidy received prior to beginning independent activities, joining an economic society 
or founding an economic society, based on provisions of the law or international contracts 
– maternity benefit given by the state, regarding social considerations or within the system 
of social security 
– social benefits 
– temporary benefits 
– funeral support given in accordance with the provisions of the social law by the local 
government, by an interest organisation or by the employer 
– home maintenance support, subsidy for rental of accommodation 
– orphans’ allowance 
– foster-parent fee, special provision due to foster parents 
– after-care provision 

22 

 
 
EUROMOD Country Report – HUNGARY 

– old age allowance 
– personal allowance of the blind 
–  disability  allowance,  travelling  support  for  seriously  disabled  private  persons  as 
provided by the law 
– family aid for the relatives of conscripts and those carrying out civil service, monetary 
supply to disabled serviceman, national fee for care as provided by the law 
– income of interest payment received from a private person or from a pay-office, if it is 
maximum 5% more than the base rate of the central bank interest 
– debt management service 
Among  tax-exempt  incomes,  payment  in  kind  supplementing  wages  also  needs  to  be 
mentioned. One of the most frequently used forms is the provision of lunch on vouchers. 
The regulation of this was changed year by year. Another significant item is the provision 
of holiday contributions. These can be given for free, either in the form of holiday services 
or in the form of holiday checks and can also be used by close relatives, either together 
with or separately from the employee. Its limit is the amount of the minimum wage, in 
2010 73,500 HUF. Schooling support can also be provided tax-exempt for the parents at 
the beginning of the school year, up to 22,500 HUF in 2010. Finally, so-called “presents 
of little value” can also be given to employees, up to 10% of the minimum wage.  

Local taxes (helyi adók): Problems of local taxes are the result of territorial division. There are 
more than 3 100 local governments in Hungary, all of which might have their own provisions 
concerning  tax  types  below.  They  have  a  legal  right  to  levy  taxes  and  even  though  there  is  a 
maximum limit, the actual regulations are framed by the local governments. 

Indirect taxes 
Value Added Tax: In Hungary, VAT was introduced in 1988. VAT is to be paid after each and 
every product and service sold inland and after the import of products. VAT is payable both by 
private  persons  and  by  legal  entities,  which  means  that  there  are  only  estimates  available 
concerning  the  size  of  VAT  paid  by  the  population.  VAT  revenues  form  the  major  source  of 
income for the state budget. The general rate of VAT is increased from 25 to 27% in 2012, with 
the exception of the products and services listed in the regulation (more details in the Feasibility 
Study). 
There are further indirect taxes and levies collected by the National Tax and Customs 
Administration. They play a minor role relative to VAT, but as an example they are as 
follows: excise tax; environmental protection; charge for environmental load; gambling 
tax; registration tax; energy tax. 

2.  SIMULATION OF TAXES AND BENEFITS IN EUROMOD 

2.1  Scope of simulation 

Not  all  the  taxes  and  benefits  mentioned  in  the  previous  section  are  simulated  by 
EUROMOD.    Some  are  beyond  its  scope  entirely  and  are  neither  included  in  the 
EUROMOD database nor in the output income variables (e.g. Value Added Tax). Others 
are  not  possible  to  simulate  accurately  with  the  available  data  (old  age  benefits  and 
unemployment  benefits).  They  are  included  in  the  database  and  may  be  chosen  as 
components of output variables, but the rules governing them may not be changed in the 
model. 0.1 and Table 2.2 classifies each of the main tax-benefit instruments (and some 

23 

 
 
 
EUROMOD Country Report – HUNGARY 

minor ones introduced above) into one of these groups and provides a brief explanation 
as to why the instrument is not fully simulated if this is the case. 

Table 2.1. Simulation of benefits in EUROMOD 

Old age benefit 
Early Retirement Pension 
Advanced Pension 
13th month pension 
Temporary Widow(er)’s 
Pension 
Permanent Widow(er)’s 
Pension 

Parental Pension 
Orphan’s Allowance 
Absence Fee 
Sickness Benefit 
Invalidity Annuity 
Temporary Invalidity 
Annuity 
Disability Benefit 
Work Accident Sickness 
Benefit 
Work Accident Annuity 
Work Accident-related 
Disability Pension 
Unemployment Benefit 

Pre-retirement 
Unemployment 
Assistance 
Incentive Benefit for Job-
seekers 
Maternity Allowance 
Child Care Free 
Maternity Grant 
Child Care Allowance 
Child Raising Support 
Family Allowance 
Regular Child Protection 
Allowance 
Old age allowance 
Regular benefit 
Home maintenance 
support 
Nursing fee 

2010- 
 2023 
POA 
POA 
POA 
POA_S 
PSU 

PSU 

PSU 
PSU 
BHL 
BHL 
PDI 
PDI 

PDI 
BHL 

BHL 
PDI 

BUN 

BUN 

BUN 

BMACT 
BPLCT 
BMANCc 
BCCNCc 
BCCLT 
BCHNM 
BCHMT 

POAMT 
BSA00 
BSAHO 

- 

2020- 
2023 

Why not fully simulated? 

I 
I 
I 
I 
I 

I 

No data on contribution history 
No data on contribution history 
No data on contribution history 
No data on contribution history 
No data on contribution history 
In the EU-SILC database if the survivor’s benefits paid after the 
standard retirement age these benefits are included under the old 
age benefits. 

No data on contribution history 
I 
I 
No information about the eligibility conditions 
I  Data available is not sufficient to simulate all eligibility conditions 
I  Data available is not sufficient to simulate all eligibility conditions 
No information on disability 
I 
No information on disability 
I 
Data available is not sufficient to simulate all eligibility conditions 

I  Data available is not sufficient to simulate all eligibility conditions 
No information about the sickness 
I 

I 
I 

S 

I 

I 

I 

S 
S 
S 
S 
S 

S 
S 
PS 

I 

No information about the sickness 
No information about the sickness 

No data on contribution history (coded (PS) but currently switched 
off) 
No data on contribution history 

No data on contribution history 

No data on contribution history 

No information about the size of flat 

No information about the eligibility conditions 

Notes: “-”: policy did not exist in that year; “E”: excluded from the model as it is neither included in the micro-data nor 
simulated; “I”: included in the micro-data but not simulated; “PS” partially simulated as some of its relevant rules are 
not simulated; “S” simulated although some minor or very specific rules may not be simulated. 

24 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

Table 2.2 Simulation of taxes and social contributions in EUROMOD 

2020-2023 

tin  PS 

Why not fully simulated? 

No information about all of the tax credits 

No information available 
No information about the type of the self-employment, but we estimate the number of 
the tax payers. Every eighth self-employment choosed this type of tax paying in 2006. 
 (~100 000 person or firm) 
No information available 
No information available 

No information available 
No information available 

No information available 

No information available 
No information available 

No information available 

- 
tbs 

- 
- 

- 
- 

- 

- 
- 

- 
tscee 

E 
S 

E 
E 

E 
E 

E 

E 
E 

E 
S 

tscer 

S 

tscse 

S 

Personal 
income tax 
Corporate tax 
Simplified 
business tax 

Local taxes 
Value Added 
Tax 
Excise tax 
Environmental 
protection fee 
Charge for 
environmental 
load 
Gambling tax 
Registration 
tax 
Energy tax 
Employee 
Social 
Insurance 
Contributions 
Employer 
Social 
Insurance 
Contributions 
Self-employed 
Social 
Insurance 
Contributions 

Notes: “-” policy did not exist in that year; “E” policy is excluded from the model’s scope as it is neither included in 
the  microdata  nor  simulated  by  Euromod;  “PS”  policy  is  partially  simulated  as  some  of  its  relevant  rules  are  not 
simulated; “S” policy is simulated although some minor or very specific rules may not be simulated. 

25 

 
 
 
 
 
 
 
 
2.2  Simulated policies and order of simulation 

2.2.1  Simulated policies 

The model allows simulating changes in the tax rates and contribution rates, changes in 
tax deductions and allowances, family benefits, and major rules for social assistance 
benefit. The order of simulation is reported below. 

2.2.2  Order of simulation and interdependencies 

The following table shows the order in which policies of the Hungarian fiscal system 
are simulated.  

Table 2.3. EUROMOD: order of simulation, 2018-2021 
Policy 

HU_2020  HU_2021  HU_2022  HU_2023  Description of the instrument and main output 

uprate_hu 
ConstDef_hu 
InitVars_hu 
IlDef_hu 
random_hu 

TransLMA_hu 

TuDef_hu 
yem_hu 
neg_hu 

yemcomp_hu 
bun_hu 

bmanc_hu 
bmact_hu 

bplct_hu 
bccnc_hu 

bcclt_hu 

bchnm_hu 
tscee_hu 
tscer_hu 
tscse_hu 

tin_hu 

tbs_hu 

bchmt_hu 

bfa_hu 
bsa_hu 
output_std_hu 

output_std_hh_hu 

on 
on 
on 
on 
n/a 

n/a 

on 
off 
on 

n/a 
on 

on 
off 

off 
on 

on 

on 
on 
on 
on 

on 

off 

on 

on 
on 
on 

off 

on 
on 
on 
on 
n/a 

n/a 

on 
off 
on 

n/a 
on 

on 
off 

off 
on 

on 

on 
on 
on 
on 

on 

off 

on 

on 
on 
on 

off 

on 
on 
on 
on 
n/a 

n/a 

on 
off 
on 

n/a 
on 

on 
off 

off 
on 

on 

on 
on 
on 
on 

on 

off 

on 

on 
on 
on 

off 

on 
on 
on 
on 
on 

on 

on 
off 
on 

on 
on 

on 
off 

off 
on 

on 

on 
on 
on 
on 

on 

off 

on 

on 
on 
on 

off 

DEF: UPRATING FACTORS 
DEF: CONSTANTS 
DEF: Initialise variables 
DEF: INCOME CONCEPTS 
DEF: Random assignment for covid WAGE 
COMPENSATION 
DEF: Select individuals that transit to 
unemployment and WC schemes (LMA) 
DEF: ASSESSMENT UNITS 
SWITCH - DEF: minimum wage 
DEF: recode negative income from self-
employment to zero 
BEN: Wage compensation scheme Covid-19 
BEN: unemployment benefit (munkanèlküli 
jàradèk) 
BEN: Maternity Grant (Anyasàgi Tàmogatàs) 
SWITCH - BEN: Maternity Allowance 
(csecsemőgondozási díj) 
SWITCH - BEN: Child Care Fee 
BEN: Child Care Allowance 
(Gyermekgondozàsi Segèly) 
BEN: Child Raising Support 
(Gyermeknevelèsi Tàmogatàs) 
BEN: Family Allowance (Csalàdi Pòtlèk) 
SIC: Employee Social Insurance Contributions 
SIC: Employer Social Insurance Contributions 
SIC: Self-employed Social Insurance 
Contributions 
TAX: Personal Income Tax (Szemèlyi 
Jövedelemadó) 
TAX: Simplified Business Tax (Egyszerűsített 
Vállalkozói Adó) 
BEN: Regular Child Protection Benefit 
(Rendszeres Gyermekvèdelmi Tàmogatàs) 
BEN: Family Benefit 
BEN: Social Assistance (Szociàlis Segèlyek) 
DEF: STANDARD OUTPUT INDIVIDUAL 
LEVEL 
DEF: STANDARD OUTPUT HH LEVEL 

 
 
 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

In the Hungarian system there are four means-tested benefits that can be simulated. Their 
amounts are calculated within two policies: regular child protection allowance and social 
assistance (including old age allowance, regular benefit and home maintenance support). 
They  all  depend  on  income  after  income  tax  and  employee  and  self-employed 
contributions have been deducted. They are therefore simulated after the simulation of 
income taxes and social insurance contributions.  

The other four simulated benefits are non means-tested benefits. These are: maternity or 
child related benefits that depend on the age of the child or the number of the dependent 
children  in  the  household.  These  non-means-tested  benefits  must  be  simulated  first, 
because they are considered incomes by the means-tested income criteria. 

2.3  Policy switches 

There is one switch used in the Hungarian model2 controlling minimum wage modelling 
(yem_hu). If the switch is set to on then minimum wage hourly rate is applied for anyone 
reporting  lower  hourly  rate  than  the  official  national  minimum  wage,  otherwise  (off) 
hourly rates are taken as reported from the original dataset. Minimum wage adjustment 
switch is set off by default in Hungury.  

2.4  Social benefits 

2.4.1  Maternity grant (Bmanc_hu) 

Resident women who give birth, having previously participated in pre-natal care at least 
4 times and having no insurance, are entitled to a one-off lump-sum payment of 225% of 
the  minimum  old  age  pension  or  300%  in  case  of  twins.  (In  EUROMOD  the  twins 
regulation is not implemented because of the lack of data.) 

•  Definitions 

The unit of analysis is the family. This comprises the head, his spouse or partner and their 
own children. Dependent children are defined in the tax unit as aged 16 or younger or 24 
or younger if they are in full-time secondary education, not married and not cohabiting. 

•  Eligibility conditions 

This benefit is paid if at least one one-year old child lives in the family. 

• 

Income test 

This benefit does not depend on other incomes. Income test is not necessary. 

•  Benefit amount 

The maternity grant is a lump-sum payment of 225% of the minimum old-age pension. 
In order to obtain average monthly amounts, Euromod output is divided by 12.  

2.4.2  Maternity allowance (Bmact_hu) 

Mothers giving birth to a child are entitled to maternity allowance if they are insured for 
at least 180 days during the last two years before delivery they are entitled to maternity 
allowance. 

2 Policy switches are denoted with ‘switch’ in the policy spine (for a given policy year), while their default values 
(on or off) are set in a separate dialogue box in the model, accessed via Country Tools > Set Switches in the 
EUROMOD User Interface (UI). 

27 

 
 
 
 
                                                           
EUROMOD Country Report – HUNGARY 

•  Definitions 

The unit of analysis is the family. It is paid for 24 weeks (4 weeks before and 20 weeks 
after  the  planned  date  of  birth,  or  24  weeks  after  the  date  of  birth,  depending  on  the 
mothers’ choice) and its amount is 70% of the daily average gross earnings of the previous 
year. 

•  Eligibility conditions 

This benefit is paid if at least one child liven in the family under one-year old. 

• 

Income test 

This benefit does not depend on other incomes. Income test is not necessary. 

•  Benefit amount 

Its amount is 70% of the daily average gross earnings of the previous year. 

2.4.3  Child care fee (Bplct_hu) 

Child  care  fee  is  a  contributory  benefit,  which  is  paid  after  the  expiry  of  Maternity 
Allowance until the child reaches 2 years of age. From 1st of January 2014 the mothers 
may have gainful activity after the 1st year of age of the child, and from 1st of January 
2016 the mothers may have gainful activity without limitation 

•  Definitions 

The unit of analysis is the family. This comprises the head, his spouse or partner and their 
own children. The eligibility criterion is at least 180 days of insurance during the last two 
years before delivery of the parent who wants to take care of the child at home. 

•  Eligibility conditions 

This benefit is paid if at least one one-year old child lives in the family. 

• 

Income test 

This benefit does not depend on other incomes. Income test is not necessary. 

•  Benefit amount 

Its  amount  is  70%  of  the  daily  average  gross  earnings  of  the  previous  year  with  a 
maximum of 70% of twice the minimum wage. 

2.4.4  Child care allowance (Bccnc_hu) 

A flat-rate benefit to parents who stay away from work to care for their children under 
the age of 3 (under age of 10 in case of permanently ill or severely disabled children) or 
for  grandparents  who  care  for  their  grandchildren  aged  between  1-3  years  in  the 
household of the parent. The monthly amount is equal to the minimum old age pension. 

•  Definitions 

The  unit  of  analysis  is  the  family.  This  comprises  the  head,  his  spouse  or  partner, 
grandparents and their own children. Dependent children are defined in the tax unit as 
age<=2 or age<=9 if disabled, grandparents are defined as parents of the child's mother 
or father.  

•  Eligibility conditions 

Eligible are units where at least one adult person is caring for a 0-2 years old child if the 
person is the parent, or a 1-2 years old child if the person is the grandparent. 
Since 2008, the caring parent of children under 1 year of age cannot pursue a gainful activity, 
while parents of children older than 1 year of age can pursue a gainful activity without 
restriction. 
• 

Income test 

Income test is not applicable 

•  Benefit amount 

The monthly amount is equal to the minimum old age pension. 

28 

 
 
EUROMOD Country Report – HUNGARY 

2.4.5  Child raising support (Bcclt_hu) 

Benefit for parents who raise three or more children in their own home, if the youngest 
child is between 3 and 8 years old. The monthly amount is equal to the minimum old age 
pension, irrespective of the number of children. 

•  Definitions 

The unit of analysis is the family. This comprises the head, his spouse or partner and their 
own children. Dependent children are defined in the tax unit as aged 16 or younger or 24 
or younger if they are in full-time secondary education, not married and not cohabiting.  

•  Eligibility conditions 

Eligible are families where parent(s) work maximum 4 hrs per week in order to take care 
of at least 3  dependent children where there is at least one child  age between  3 and  7 
years-old (included) and no child age 0 to 2 (i.e. a 3-7 years old child is the youngest). 

• 

Income test 

Income test is not applicable 

•  Benefit amount 

The monthly amount is equal to the minimum old age pension. 

2.4.6  Family allowance (Bchnm_hu) 

Family allowance is mainly meant to support families with schooling costs. It is paid to 
the parent from the birth of the child to the termination of compulsory education studies 
(usually 0-16 years); it may be paid also during secondary school education or vocational 
training  (up to 20  years  of  age).  Its amount  depends on  the  number  of children  in  the 
family, household type (e.g. single-parent family) and whether the child is disabled. In 
order to support families with schooling costs, in July the amount of the family allowance 
is double.  

•  Definitions 

The unit of analysis is the family. This comprises the head, his spouse or partner and their 
own children. 
Dependent children are defined in the tax unit as aged younger than 16; or 24 if they are 
in full-time secondary education, not married and not cohabiting  

•  Eligibility conditions 

Family Allowance is a universal benefit. This benefit is paid if at least one dependent 
child lives in the family.  
Income test 
Income test is not necessary 
•  Benefit amount 

• 

The monthly amount for lone parents depends on number of children living in the family: 
1 child: HUF 13,700, 
2 children: HUF 14,800 per child, 
3 or more children: HUF 17,000 per child, 
If the child is permanently ill or severely disabled: HUF 25,900. 

The monthly amounts for other families are: 
1 child: HUF 12,200, 
2 children: HUF 13,300 per child, 
3 or more children: HUF 16,000 per child, 
If the child is permanently ill or severely disabled: HUF 23,300. 
The amounts paid by the family allowance have not changed since 2009 (!): 

1 child in the family 
1 child, single parent 
2 children in the family 

12,200, 
13,700, 
13,300  

29 

 
 
 
 
EUROMOD Country Report – HUNGARY 

2 children, single parent 
3 or more children in the family 
3 or more children, single parent 
permanently ill or severely disabled child in 
the family 
permanently  ill  or  severely  disabled  child, 
single parent 

14,800  
16,000  
17,000  
23,300, 

25,900, 

In EUROMOD, the double amount paid in July and special amount for foster children 
cannot be simulated. 

2.4.7  Regular child protection allowance (Bchmt_hu) 

•  Definitions 

This benefit is paid to the family if the income per person in the family does not exceed 
the  amount  of  the  defined  percentage  of  the  minimum  old  age  pension.  It  is  meant  to 
support low income familites with children. 
The unit of analysis is the family. It comprises of the head, his spouse or partner and their 
own children. 
Dependent children are defined in the tax unit as aged 17 or younger, or under age 23 
(included) if they are in full-time secondary education, not married and not cohabiting or 
25 or younger if they are in full-time tertiary education, not married and not cohabiting. 

•  Eligibility conditions 

Eligible  are  families  with  children  where  per  capita  monthly    household  income  (as 
defined in il_meanstestY) is below 130% of the minimum old age pension. 

• 

Income test 

The income test is based on per capita monthly household income defined as disposables 
income (excluding regular child protection allowance - this benefit - and social assistance 
(as they are not yet calculated)). 

•  Benefit amount 

The benefit is paid in a fixed amount per year to families with children (independently 
from the number of children). It amounts to 11 600 HUF per year. 

2.4.8  Social assistance (BSA_HU) 

2.4.8.1  Old age allowance 
This is a  social assistance scheme  to ensure a  minimum  income  during old  age  in  the 
absence of an old age pension. The amount of the benefit is determined by the income of 
the person (and his/her partner or spouse). 

•  Definitions 

The unit of analysis is the ‘couple’. This comprises the head, his spouse or partner. Tax 
unit comprises only head and his/her partner, i.e. income of other household members is 
not taken into account. 

•  Eligibility conditions 

Eligible are people who have reach the pension age or those living in a couple  where at 
least one person is older than the pension age.  

• 

Income test 

Old  age  allowance  is  a  means-tested  benefit  based  on  il_meanstestY  which  is  defined  as 
disposables income with the exception of regular child protection benefit (bchmt_s) and 
social assistance (bsa_s) (as they are not yet calculated). 

•  Benefit amount 

For couples the maximum benefit amounts to 80% of the minimum old age pension   per 
person.  
For singles the maximum benefit amounts to 95% of the minimum old age pension   or 
130% if the person is older than 75 years old. Income of the couple/single (as defined in 
il_meanstestY) is withdrawn in full from maximum benefit. 

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EUROMOD Country Report – HUNGARY 

2.4.8.2  Regular benefit  
This is a social assistance scheme to ensure a minimum standard of living. From 2006 to 
2010  the  assessing  of  the  entitlement  and  the  amount  of  the  assistance  based  on  the 
income projected to the  consumer unit  instead  of  the  previous  income  per capita. The 
consumer unit is the rate which shows the structure of consumption within a family. The 
first major member of the family and the disabled child’s rate is 1,0 while the ratio of the 
companion  (spouse)  and  a  child  is  lower  (0,9-0,7).  From  2009  it  was  replaced  by  the 
stand-by allowance for people over 55. 

•  Definitions 

The unit of analysis is the household, which includes all individuals in the household as 
members of the same unit. Only one person in a family is entitled to this support. 
Dependent children are defined in the tax unit as children under 16 or children under 21 
not in work or children under 25 in full time education and not working, not married nor 
cohabiting. 

•  Eligibility conditions 

Eligible are persons who are 18 years or older who have a disability degree of at least 
67% or are non-employed, i.e. unemployed and their income is lower than the 90% of the 
minimum pension. 
In  2009  the  regular  benefit  was  replaced  by  the  stand-by  allowance.  The  eligibility 
conditions  were  changed:  People  age  18-55  with  children  or  those  age  over  56  (up  to 
pension age) are eligible if they are disable or not entitled to unemployment benefit and 
they have low income (as defined by il_sareexclY in the income list). 

• 

Income test 

il_meanstestY  is  defined  as  disposable  income  with  the  exception  of  regular  child 
protection benefit and social assistance.  

•  Benefit amount 

From 2006 to 2009 the maximum amount of the benefit is 90% of the minimum old age 
pension. The payable amount is the difference between the means-tested income and the 
income calculated with the per consumer unit . The lower and upper limit of the benefit 
are respectively 0 and the minimum wage. 
2.4.8.3  Stand-by allowance (from the year 2009) 
This is a social assistance scheme to ensure a minimum standard of living. The assessing 
of the entitlement and the amount of the assistance based on the income projected to the 
consumer unit instead of the previous income per capita. The consumer unit is the rate 
which shows the structure of consumption within a family. The first major member of the 
family and the disabled child’s rate is 1,0 while the ratio of the companion (spouse) and 
a child is lower (0,9-0,7). 

•  Definitions 

The unit of analysis is the household, i.e. all individuals in the household are members of 
the same unit.  
Dependent children are defined in the tax unit as household members 15 or younger or, 
if in education and not working, 24 or younger. 

•  Eligibility conditions 

Eligible are persons who are  younger than 55  and older  than 18  years old and have  a 
disability degree of at least 67% or do not receive unemployment benefit and are non-
employed, i.e. unemployed and do not have income as defined in il_sareexclY and do not 
received regular social benefit.  

• 

Income test 

il_meanstestY  is  defined  as  disposables  income  with  the  exception  of  regular  child 
protection benefit and social assistance (as they are not yet calculated).  

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EUROMOD Country Report – HUNGARY 

•  Benefit amount 

The maximum amount of the benefit is the minimum old age pension.  

2.4.8.4  Home maintenance support (currently not simulate) 
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. 
•  Definitions 

The unit of analysis is the household (all individuals in the household are members of the 
same unit). 

•  Eligibility conditions 

Eligible are households where per consumer unit income does not exceed 150% of the 
minimum old age pension (in 2012 this increased to 250%). 

• 

Income test 

Household  income  test  is  based  on  the  per  consumption  unit  household  income 
(il_meanstestY).  The  consumer  unit  is  the  rate  which  shows  the  structure  of 
consumption  within  a  family.  However,  this  is  different  from  that  used  for  social 
assistance: the first adult of the household has a rate of 1,0, the second adult has a rate of 
0.9, other adults weight 0.8, first and second child also weight 0.8, other children have a 
rate of 0.7. Extra weight (0.2) is given to the household if it is a lone parent household. 

•  Benefit amount 

 The home maintenance supports maximum 30% of recognized housing costs.  

The maximum  amount of the  benefit  depends on  household  size. For each  recognized 
squared meter, it pays 450HUF:  

30% of the maximum amount of the benefit is paid to household with per capita income lower 
than 50% of minimum pension; for households with per-capita income between 50% and 150% 
(250% from 2012) of minimum pension, the amount of the benefit is reduced and the new rate is 
calculated as follows (0.3-(((i_hhpercapitaY1 - $MinPension_m*50%)/$MinPension_m)*0.15)) 
The regulation of this benefit changed at 1st of March 2015. Regarding this the local government 
declair the rules of this benefit and not the social act. 

2.5  Social contributions 

In  Hungary,  the  social  insurance  system  has  two  large  parts:  the  pension  scheme  and 
health insurance. 

2.5.1  Employee social contributions (Tscee_hu) 

Employees  pay  7%  for  health  insurance  contribution  and  10%  pension  insurance 
contribution.  The  general  employee  insurance  contributions  amounts  to  1,5%  of 
employment income in all investigated years. No employee social insurance contributions 
are payed if in receipt of old age pension. The assessment unit is the individual. 

COVID:  In  11  sectors  (such  as  tourism,  catering,  event  org.,  sport  etc)  the  employee 
doesn't pay contribution too, only 7710 HUF/month health insurance. Off in baseline due 
to missing granularity of sectoral information. 

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2.5.2  Employer social contributions (Tscer_hu) 

•  Liability for contributions 

Employers  have  to  pay  Pension  and  Health  insurance  contribution  for  each  of  their 
employees  

•  Thresholds and rates  

From  2012  the  health  insurance,  pension  insurance  and  the  general  insurance 
contributions were erased. Instead of these, 27% social contribution tax was introduced 
in 2016, (reduced to 22% from 2017 and to 19,5% in 2018. The assessment unit is the 
individual. 

COVID: Between March and June 2020 the employer doesn't pay social contribution tax 
in  11  subsectors  (like  tourism,  catering,  event  org.,  sport  etc).  Off  in  baseline  due  to 
missing granularity of sectoral information. 

2.5.3  Self-employed social contributions 

Entrepreneurs  (those  with  no  zero  self-employment  income)  and  KATA  (simplified 
business tax) payers (lse00 = 1) pay self-employed contributions. 
The contribution base for entrepreneurs is the highest between minimum wage and self-
employment income. In the case of KATA payers the contribution base is the amount of 
the  minimum  wage.  KATA  payers  do  not  pay  self-employed  health  insurance 
contributions if they are at the same time employees. 
The  lse00  variable  has  been  generated  to  identify  the  KATA  payers  {lse00=1}.  This 
variable  is  created  from  the  self-employment  income  variable  based  on  the  following 
criteria:  for  example,  if  self-employment  income,  (py050g)  <  12  000  000  HUF  then 
{lse00=1. Because of the low estimate of self-employment income this causes a very large 
number of individuals in the sample to be classified as KATA payers.  

From  2012  the  self-employment  social  income  contribution  has  4  part:  27  %  social 
contribution  tax  (reduced  to  22%  from  2017,  19,5%  in  2018);  7%  health  insurance 
contribution; 10% pension insurance contribution; 1,5% labour market contribution. 

2.6  Personal income tax (tin_hu) 

The main tax simulated for Hungary is personal income tax. Every citizen is obliged to 
file a tax return at the end of the tax year if their annual income comprises taxable income. 

2.6.1 

 Tax Unit 

Personal income tax is individual. However, there is a partial exception to this rule: family 
tax credit is jointly assessed. In this case the unit of analysis is the family. This comprises 
the head, his/her spouse or partner and their own dependent children. Dependent children 
are defined as aged 16 or younger or aged 24 or younger if they are in full-time secondary 
education. Children cannot be married or cohabiting. 

2.6.2  Exemptions 

Some income components do not have to be declared to the tax authorities, and thus are 
not included in the concept of taxable income (pensions, child and family benefits). 

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EUROMOD Country Report – HUNGARY 

2.6.3  Tax base  
The  tax  base  is  defined  as  taxable  income  excluding  EVA  payers'  ({lse00=1})  self-
employment  income.  Their  self-employment  income  is  stored  in  yse  and  used  for 
calculating SIC, but not for tax calculation. 
Taxable  income  includes  all  sources  of  income.  More  specifically,  the  definition  of 
taxable income is as follows: 
IL: taxableY 
taxableY= child raising support (gyermeknevelési támogatás, bcclt) + child care 
allowance  (gyermekgondozási  segély,  bccnc)  +  child  care  fee  (gyermekgondozási 
díj,  BCCCT)  +  sickness  benefits  (táppénz,  távolléti  díj,  BHL)  +  maternity 
allowance  (terhességi-gyermekágyi  segély,  BMACT)  +  unemployment  benefits 
(munkanélküli ellátások, BUN) + employment income, YEM) + property income (YPR) 
+ self-employment income (YSE)+ old-age income (poa) 

2.6.4  Tax schedule  

In 2013 and 2014 a fixed flat tax system was introduced where the tax rate is 16% for 
everyone. In 2016 this rate was decreased to 15%. 

2.6.5  Tax credits  

Tax credits are defined as deductions from tax due. These tax credits are non-refundable. 
In other words, final tax is calculated as the amount of tax resulting from the tax schedule 
minus the sum of all tax credits, subject to a minimum of zero.  
A  considerable  number  of  tax  credits  cannot  be  simulated,  because  of  the  missing 
variables or missing relevant information in the original EU-SILC database. The model 
contains most of these tax credits but some of these are switched off. In this chapter we 
listed only the simulated tax credits. 

2.5.6.1. Tax credit on income from wages 
The tax credit on income from wages was eliminated from the tax system in 2012. 

2.5.6.2. Tax credit for serious disability 
Eligible  are  people  with  a  disability  level  of  at  least  67%.  The  tax  credit  amounts  to 
changed to the 5% of the minimum wage from 2010. 

2.5.6.3. Family tax credit 
From 2011 the family tax credit was deducted from the tax base (becoming effectively a 
tax  allowance)  and  not  from  the  tax  due.  The  amount  are:  {nDepChInTU=1}=66670#m  or 
{nDepChInTU=2}=83330#m*2 or {nDepChInTU>=3}=220000#m 
The tax credit is shared (proportionally to tax after deduction of other tax credits) among 
parents to make the maximum use of it. 

2.7 

Itemised tax of small taxpayers (tis_hu) 2020-2023 

Main condition of KATA (Kisadózó vállalkozások tételes adója – Itemised tax of small 
taxpayers)  is  the  taxpayer  expected  income  does  not  excide  12,000,000  HUF.  If  the 
weekly working hours is at least 36 hours, the tax amount is 50,000 HUF per months; if 
the self-employment works less than 36 hours per week, the tax amount is 25,000 HUF 
per months. 

34 

 
 
 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

2.7.1  Assessment unit 

The unit of analysis is the individual (tu_individual). 

2.7.2  Eligibility conditions 

If a company expected income does not excide 12,000,000 HUF per year. 

2.7.3  Tax amount 

The weekly working hours more or equal than 36 hours (lhw=>36) 50,000 HUF tax per 
months to be paid. If the self-employment works less than 36 hours per week, the tax is 
25,000 HUF per months 

2.8  Wage  compensation  scheme 

to  Covid-19 
yemcomptime_hu, yemcomp_hu, yemadj_hu, yemmyadj_hu)  

in  response 

(random_hu, 

2.8.1  Assessment unit 

The unit of analysis is the individual (tu_individual_bg). 

2.8.2  Eligibility conditions 

If a company is unable to pay its employees because of the epidemic and choose to 
reduce their working hours (and salary accordingly). 

2.8.3  Wage compensation level paid by the state 

The wage compensation (EUROMOD variable bwkmcee_s) covers 70% of the worker’s 
gross earnings as well as the statutory employer’s social security contributions. A 
reduction of hours is also possible.  

2.8.4  Duration of scheme 

The support is simulated for a three months (EUROMOD variable bwkmceemy_s). At 
the time of writing, this was the maximum duration 

2.8.5  EUROMOD Notes 

This policy can only produce results if the model is run in combination with the LMA 
add-on. The individuals that are selected to undergo transitions to monetary compensation 
schemes are defined in the TransLMA_hu policy, which is switched on automatically by 
the add-on. For more information about the modelling of labour market transitions please 
consult the ‘Simulating labour market transitions in EUROMOD’ document. 

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EUROMOD Country Report – HUNGARY 

3.  DATA 

3.1  General description 

The Hungarian database is drawn from the Community Statistics on Income and Living 
Conditions (EU-SILC) as provided by Eurostat (UDB_cHU18). EU-SILC is expected to 
become  the EU reference source  for  comparative statistics  on income  distribution  and 
social  exclusion  at  European  level,  particularly  in  the  context  of  the  'Programme  of 
Community action to encourage cooperation between Member States to combat social 
exclusion' and for producing structural indicators on social cohesion for the annual spring 
report to the European Council. 
The instrument aims to provide two types of data: 
- Cross-sectional data pertaining to a given time or a certain time period with variables 
on income, poverty, social exclusion and other living conditions 
-  Longitudinal  data  pertaining  to  individual-level  changes  over  time,  observed 
periodically over, typically, a four years period. 
Social exclusion and housing condition information is collected at household level while 
labour, education and health information are obtained for persons aged 16 and over. The 
core of the instrument, income at very detailed component level, is mainly collected at 
personal level but a few components are included in the household part of SILC. 
The Statistics on  Income and  Living  Conditions is  conducted by  the Central Statistics 
Office (HCSO).  
The 2021 EU-SILC sample in Hungary was selected by a stratified two-stage sampling 
design in a part of the population and by stratified one-stage design in the other part. The 
final sampling units are the dwellings and, in each of them, every household is observed. 
Localities were stratified by General Election Districts and size (in terms of number of 
dwellings). In the first part, one locality was selected with probability proportional to the 
number of dwellings. Within each selected locality, a systematic selection of dwellings 
was done. As for the other part of the population, a systematic selection of dwellings was 
done in each stratum. 

Table 3.1 EUROMOD database description 

EUROMOD 
database 
Original name 
Provider  
Year of 
collection 
Period of 
collection  
Income 
reference period 
Unit of 
assessment  
Coverage  
Sample size  
Response rate 

2021 

HU_2021_a1.txt 

UDB_cHU20  
HCSO; EUROSÍTAT 
2021 

01/03/2021-01/05/2021 

01/01/ to 31/12/ previous year to 
fieldwork 
Households* 

Private household 
Ind: 16,852 HH: 7,805 
n.a (household level; HY010) 

*Notes: Persons living in collective households and in institutions are generally excluded from the 
target population. Refers to a non-institutional collective dwelling such as a boarding house, dormitory in 

36 

 
 
 
 
EUROMOD Country Report – HUNGARY 

an educational establishment or other living quarters shared by more than five persons without sharing 
household expenses. 

3.2  Data adjustment  

Generally  we  try  to  keep  the  original  EU-SILC  dataset  and  no  further  adjustments  to 
variables have been made. Eurostat applies several processes to validate the database. The 
validation process includes syntax and a logical check audit, for example, on the structural 
coherence  of  the  files  (household  register,  personal  register,  household  data,  personal 
data) and the coherency between different variables of the same record and other records. 
In order to guarantee consistency between demographic variables and income variables, 
which refer to the previous  year (and on which EUROMOD simulation are based), all 
children born between the end of the income reference period and the date of interview 
have been dropped from the sample. The final sample includes 18 591 individuals in 8 
142 households. 

3.3  EUROMOD SILC Database (EMSD)  

From 2021 onwards, a new database prepared by Eurostat - EUROMOD SILC database 
(EMSD) is used to derive the EUROMOD input dataset. The EMSD includes: 
• all UDB (User Database) variables (each variable is described in the doc 65 available 
online); 
• national SILC data supplied by the National Statistical Institute (NSI); 
• EUROMOD variables created and imputed by Eurostat because of restricted data access 
or knowledge in-house.  

Based  on  the  EMSD,  the  national  team  derives  additional  variables  requiring  a  deep 
understanding of country specificities (for instance national tax-benefit rules). The final 
EUROMOD  input dataset  is  therefore  made  of  variables  created by both Eurostat  and 
national team. 

Some of the EUROMOD variables produced by Eurostat are created and/or imputed with 
PDB (Production Database) variables. The reason being that the modalities of the PDB 
variables are more detailed than in UDB. According to the agreement between the NSI 
and Eurostat, the national team was allowed to use the more detailed information coming 
from  the  PDB  to  derive  some  EUROMOD  variables  or  to  use  them  as  intermediate 
variable to impute other EUROMOD variables. 

However, in the final EUROMOD input dataset, same disclosure rules as in the UDB are 
applied. Nevertheless, when imputing variables, disclosure rules are not applied, so the 
values  might  still  differ  from  the  one  that  a  user  could  obtain  when  replicating  the 
imputation based on the UDB data set. 

37 

 
 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

3.4 

Imputations and assumptions 

3.4.1  Time period 

In the SILC user database, the income reference period is a 12-month period. Information 
on earnings refers to the last tax year. Similarly, information about pensions and benefits 
refers to the calendar year before the interview. Self-employment income is based on this 
reference period too.  
In general: “The interval between the end of the income reference period and the time of 
the interview for the respondent concerned shall be limited to 8 months as far as possible. 
This applies both to the household and personal samples, and irrespective of whether the 
reference  period  used  is  fixed  in  terms  of  calendar  dates  for  the  whole  sample  or  is  a 
moving  reference  period  determined  according  to  the  timing  of  the  interview  for  the 
household or person concerned.”3 
All monetary amounts in the SILC are expressed in annual terms. These are converted 
into average monthly terms (dividing by 12) for the EUROMOD database. 

3.4.2  Gross incomes 

The Hungarian SILC  data include variables  on income tax, employee social insurance 
contributions and other deductions from gross earnings. In general, “gross income means 
the total monetary and non-monetary income received by the household over a specified 
'income  reference  period',  before  deduction  of  income  tax,  regular  taxes  on  wealth, 
employees', self-employed and unemployed (if applicable) compulsory social insurance 
contributions  and  employers'  social  insurance  contributions,  but  after  including  inter-
household transfers received.”4 

3.4.3  Disaggregation of harmonized variables 

Information on simplify taxation for self-employed is not reported in the original SILC 
UDB. Therefore, we impute whether self-employed workers  are subject to simplify or 
full  taxation  base  on  whether  their  annual  self-employment  income  is  less  than 
12,000,000 HUF. In this case the variable lse00 is set to be 1 to indicate that the person 
is classified as an KATA payer. However, controlling only for income it is not enough to 
identify the all KATA payers in Hungary because most of the self-employed in the sample 
satisfy  the  income  criteria.  Hence,  to  reflect  the  proportion  of  KATA  payers  in  the 
population, one in eighth self-employed are randomly selected to be KATA payers. The 
others are subject to ‘normal’ taxation.  

3.5  Updating 
To account for any time inconsistencies between the input dataset and the policy  year, 
updating  factors  are  used.  Each  monetary  variable  (i.e.  each  income  component)  is 
updated so as to account for changes in the non-simulated variables that have taken place 
between the year of the data and the year of the simulated tax-benefit system. Updating 
factors  are  generally  based  on  changes  in  the  average  value  of  an  income  component 
between  the  year  of  the  data  and  the  policy  year.  For  detailed  information  about  the 
construction of each updating factor as well as the sources that have been used, see Annex 
1. 

3 SILC UDB description 
4 SILC UDB description 

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EUROMOD Country Report – HUNGARY 

As a rule, updating factors are provided both for simulated  and non-simulated income 
components  present  in  the  input  dataset.  Note  however  that  in  the  case  of  simulated 
variables, the actual simulated amounts are used in the baseline rather than the uprated 
original variables in the dataset. Updating factors for simulated variables are provided so 
as to facilitate the use of the model in cases when the user wishes to turn off the simulation 
of a particular variable. The list of uprating factors as well as the sources used to derive 
them can be found in Annex 1  

4.  VALIDATION 

4.1  Aggregate Validation   

EUROMOD results are validated against external benchmarks. Both market incomes and 
non-simulated  taxes  and  benefits  in  the  input  dataset  as  well  as  simulated  taxes  and 
benefits are validated against external official data. The following subsections discuss the 
main discrepancies between EUROMOD results and external benchmarks and the factors 
that may explain the observed differences. 

4.1.1  Components of disposable income 

In this section, the main differences between the definition of disposable income in 
EUROMOD and EU-SILC are presented. 

Table 4.1 Components of disposable income 

39 

 
 
 
 
EUROMOD Country Report – HUNGARY 

 Employee cash or near cash income 
 Employer's social insurance contribution 
Company car 
 Contributions to individual private pension 
plans  
 Cash benefits or losses from self-
employment  
 Pension from individual private plans  
 Unemployment benefits 
 Old-age benefits 
 Survivor’ benefits 
 Sickness benefits 
 Disability benefits  
 Education-related allowances  
 Income from rental of a property or land  
 Family/children related allowances 
 Social exclusion not elsewhere classified 
 Housing allowances  
 Regular inter-household cash transfer 
received 
 Interests, dividends, etc. 
 Income received by people aged under 16 
 Regular taxes on wealth 
 Regular inter-household cash transfer paid  
 Tax on income and social contributions  
 Repayments/receipts for tax adjustment  

EUROMOD  
2020-2023 
ils_dispy 
+ 
0 
0 
0 

EU-SILC 
2021 
HY020 
+ 
0 
+ 
0 

+ 

0 
+ 
+ 
+ 
+ 
+ 
+ 
+ 
+ 
+ 
+ 
+ 

+ 
+ 
- 
- 
- 
0 

+ 

0 
+ 
+ 
+ 
+ 
+ 
+ 
+ 
+ 
+ 
+ 
+ 

+ 
+ 
- 
- 
- 
+ 

4.1.2  Validation of incomes inputted into the simulation 

Table A3.1 compares the numbers of recipients of various components of original income as 
derived from EU-SILC and used in Euromod with external statistics. The number of persons 
with employment income is well estimated in all of the 4 years, the differences between 
Euromod  results  and  the  external  statistic  numbers  are  minors.  The  number  of  self-
employed is over-reported in SILC data compared to the official statistics; the difference 
is  since  the  Euromod  results  count  any  self-employment  income,  while  the  external 
statistics report only those persons declering self-employed activity. Despite the fact that 
the number of recipients is overestimated, usually the total amount of earnings from self-
employment  activities  is  under-reported  which  suggests  the  respondents  may  have 
underreported their self-employment income. (The quality report of the SILC 2021 shows 
that the sum of  the self-employment  income amounts  corresponds to 35%  of National 
Accounts related results.) Employment incomes are under reported too by about 22% in 
2020, 23% in 2021 and 26% in 2022. There are no external statistics available for the 
remaining  two  categories  of  market  income,  as  the  rent  income  and  the  investment 
income. 

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Table  A3.5  and  A3.6  compare  number  of  benefit  recipients  and  benefit  aggregated 
amount from EUROMOD simulations with external statistics provided by the Hungarian 
Central Statistical Office. In the case of the disability benefits, the external source amount 
includes  the  disability  pension  below  retirement  age,  miners’  and  early  retirement 
pension,  benefits  to  persons  with  reduced  capacity  to  work,  accident  benefits  and  the 
disability benefit. The coverage of SILC and the external data is similar, but not the same. 
This causes an overestimate effect in the number of recipients from 2020 to 2023. 

The  number  of  old  age  income  recipients  in  EUROMOD  is  similar  to  the  external 
statistics, but the number of pensioners is a little bit oversimulated and expenditures are 
undersimulated. This is because EU-SILC over-reports old age income recipients if they 
have other kind of pensions (for example if the person has disability or survivor pensions). 
We think the over-reporting drives the overestimation in the survivor benefit number of 
recipients; on the other hand, the official statistics count only beneficiaries for whom the 
survivors' benefits are a main benefit. 

In the case of the home maintenance support, EUROMOD identifies eligible households 
only based on low income criteria, household composition and characteristics related to 
housing costs based on the recognized size of the house. However, the assignment of this 
benefit also involves decisions by local government administrations. The fact that we are 
not able to capture completely the eligibility criteria for this benefit in the model is mainly 
due to the lack of information from SILC for the identification of who would fulfil the 
local government conditions. This is the main shortfall driving the underestimation in the 
number  of  recipients  and  expenditures  in  each  year.  Because  of  the  differences  in  the 
cover of the benefit recipients, we have not reported the official numbers. 

4.1.3  Validation of outputted (simulated) incomes 

Table A3.5 and Table A3.6 also show the validation of child and family related benefits. 
These benefits are usually well estimated in the model, in particularly those cases where 
the regulations are clear and all the recipients get these supports (e.g. family allowance). 
Maternity grant is undersimulated; child care allowance is slightly oversimulated. These 
deviations are due to the fact that in EUROMOD entitlement of these benefits is allocated 
conditioned to the presence of a child under 3 years old. In reality more families get this 
benefit (i.e. grandparents can be entitled to this benefit if parents do not apply), but the 
model cannot properly control for all the detailed eligibility conditions. This deviation is 
much larger in the case of the child raising support. In fact, in this case both the number 
of recipients and aggregate expenditures are oversimulated by more than 50%. As both 
number  of  recipients  and  aggregate  expenditures  deviate  from  official  statistics  by  a 
similar amount, this reinforce the hypothesis that missimulations are due to the inability 
to capture well the eligibility conditions for this benefit. 

The  simulation  of  the  regular  child  protection  allowance  is  underestimating  the  actual 
take-up  of  the  benefit.  EUROMOD  underestimates  both  the  recipients  and  the 
expenditure of this allowance in a similar magnitude (around 42% for recipients and about 
40% for expenditures in 2020). This allowance is not a universal allowance, and it is not 
available to everybody, so there may be some problem of take-up that the model is not 
accounting for. Moreover, the number of recipients depends on the budget of the local 
governments,  which  adds  another  unknown  effect;  and  the  official  statistics  coverage 
includes an in-kind part of the benefit that cannot be accounted for in EUROMOD.  

41 

 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

All of the social allowance benefits have complicated regulations which are difficult to 
fully simulate. Moreover, many information for the allocation of these benefits are not 
available from SILC and this makes the simulation quite challenging.  In Hungary, the 
assembly  of  the  local  government  provides  these  allowances,  and  the  amount  and  the 
number of recipients depend on the budget of the local government and the number of the 
entitled persons. 

Table  A3.3  shows  numbers  of  taxpayers  simulated  by  EUROMOD,  and  Table  A3.4 
reports total aggregated income tax amounts. The personal income tax aggregate amount 
is  underestimated  by  16%  in  2020,  42%  in  2022  and  overestimated  by  5%  in  2021. 
Official statistics for total number of tax payers are only available for 2020 and 2021. 
EUROMOD estimations are about 6% and 5% higher than official numbers respectively 
in 2020 and 2021.  

An itemised tax of small taxpayers’ self-employment tax became popular instead of the 
simplified business tax since 2015. From 2019 version, EUROMOD simulates this tax 
too. Although external statistics are not available yet, the number of taxpayers and the 
annual  amounts  are  usually  overestimated  by  EUROMOD.  This  indicates  that  the 
allocation methodology used to identify those paying the itemized tax is not capturing 
well the tax base or those allocated to pay such itemized tax. 

Numbers  of  employees  paying  social  insurance  contributions  are  well  represented  in 
EUROMOD.  The  revenues  from  employees’  insurance  contributions  are  only  slightly 
underestimated  in  the  years  covered  by  this  report.  The  employer  revenue  is  also 
underestimated.  One  of  the  reasons  of  this  deviation  is  the  double  activity  economic 
status.  In  Hungary  there  are  big  differences  between  the  persons  who  have  only  one 
economic status (e.g. employee, self-employment) and the workers who have more than 
one status (e.g. pensioner and employee; student and employee, etc.) regarding the social 
contributions paid. Not all the respondents in the sample mention the double work status, 
which causes a relative large difference with the external statistics. The other reason is 
that the Hungarian official statistics do not collect information that is directly comparable 
to  the  number  of  payers  and  amounts  produced  by  EUROMOD  for  self-employment 
social  contributions.  Indeed, 
the  National  Accounts  calculations  use  different 
classification for self-employment social insurance contributions revenues. 

From  2010  the  whole  unemployment  benefit  system  was  changed.  Consequently,  the 
social  basic  unemployment  supports  (like  the  regular  social  benefit  and  the  stand-by 
allowance)  were  transformed.  The  key  of  the  new  system  is  its  link  with  the  public 
employment and public works (It is known as public work or fostered workers – see page 
11 for more details). According to the new system, after 90 days of unemployment, those 
able to work will  lose their benefits unless  they  agree  to do  public  works.  Coding the 
simulation of this condition can be challenging for two main reasons. The first is related 
to the input data. In the EU SILC the economic status of public workers is ‘employee’ 
and  not  ‘unemployed’  (this  is  coherent  with  the  principle  that  public  workers  have  a 
regular job). So we cannot identify the unemployed among public workers and we cannot 
separate them from ‘normal’ employees.  

The unemployment benefits statistics provided by EU-SILC to EUROMOD contains not 
all, but most of the ESSPROS elements, such as the early retirement for labour market 
reasons, vocational training allowance, etc. The main reason is the increasing number of 
public workers (as explained above). Furthermore, the number of recipients is expected 

42 

 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

to  be  overestimated  because  of  the  criteria  that  EUROMOD  uses  to  simulate 
unemployment. In fact, a person is considered as receiving unemployment benefits even 
if  he/she  was  unemployed  just  for  one  month  in  the  whole  year.  In  fact,  EUROMOD 
produces the average amount of a benefit received in a month, while the external statistics 
represent  the  average  number  of  recipients  in  one  month  and  the  corresponding 
expenditures. Unfortunately, there is no available information directly comparable with 
our results.  
Indeed, following the economic crisis, the unemployment benefit system was changed 
significantly  as  mentioned  above.  However,  this  change  is  difficult  to  be  captured  by 
EUROMOD because the public work benefit (a specific part of unemployment benefit) 
is not simulated. Therefore, the number of recipients remains constant over time because 
people observed out of work remain the same (this is the static nature of EUROMOD 
which does not change the input data to take into account demographic variations in the 
population or changes in labour market behaviours); expenditures change as an effect of 
updating monetary values of the benefits which are taken forward over time. Although in 
previous  years  comparisons  to  external  statistics  produced  by  the  Hungarian  Central 
Statistical Office suggested that this alone is not enough to capture the changes introduced 
within this part of the benefit system, there are no external statistics available for the years 
examined  in  this  report.  Because  EUROMOD  estimates  remain  in  line  with  previous 
years, we suspect that the issue remains, but we are not able to test the simulation further. 

4.2 

Income distribution  

All income distribution results presented here are computed for individuals according to 
their  household  disposable  income  (HDI)  equalized  by  the  “modified  OECD” 
equivalence scale. HDI are calculated as the sum of all income sources of all household 
members net of income tax and social insurance contributions. The weights in the OECD 
equivalence scale are: first adult=1; additional people aged 14+ = 0.5; additional people 
aged under 14 = 0.3. 

4.2.1 

Income inequality 

Table  A3.7  in  Annex  3  presents  two  main  inequality  indicators  (Gini  Index  and 
interquartile  ratio  S80/S20)  and  the  income  distribution  for  each  year  analysed  in  this 
report. EUROMOD’s indicators do not differ significantly from the external figures from 
Eurostat calculated on the basis of EU-SILC data on disposable income of the calendar 
year  in  question.  Given  that  the  data  sources  are  the  same,  it  is  encouraging  that  the 
distributions of measured and simulated income do not differ very much. As far as the 
income shares are concerned, the biggest difference is found in the share of the first decile, 
which EUROMOD underestimates by 14% in 2020 and 19% in 2021. It is likely that this 
is mainly caused by the fact that EUROMOD assumes 100% take-up of benefits such as 
social  assistance  on  the  one  hand,  and  100%  entitlement  to  (and  take-up  of)  the  state 
pension on the  other. The  biggest overestimation is 4%  in the 7th and 8th in deciles in 
2021. EUROMOD underestimated the median and the mean income in 2020 and 2021 by 
~8%.  The  Gini  indicator  is  overestimated  by  3%,  and  the  S80/S20  indicators  are 
overestimated by ~10%, respectively.  

4.2.2  Poverty rates 

Table A3.8 in Annex 3 shows poverty rates, calculated at the 40%, 50%, 60% and 70% 
of  the  median  equivalent  household  income.  Comparing  poverty  rates  produced  by 
EUROMOD  and  Eurostat  figures,  we  find  that  in  2020  and  2021  EUROMOD 

43 

 
EUROMOD Country Report – HUNGARY 

overestimates significantly poverty at each poverty line. However, as far as the poverty 
rates  calculated  at  the  60%  and  70%  of  median  equivalised  income  are  concerned, 
EUROMOD poverty estimates get closer to Eurostat estimates as the poverty threshold 
increases.  One  of  the  reasons  for  overestimating  the  poorest  is  linked  to  the 
overestimation of the median as well as the substantial undersimulation of various social 
benefits  which  would  affect  specifically  the  lower  part  of  the  income  distribution  (i.e 
regular benefit and regular child protection allowance).  
Finally, looking at poverty rates by age groups, we find that EUROMOD significantly 
overestimates poverty (at 60% of median equivalised income as the poverty line) for both 
2020 and 2021 for all age groups except the oldest group above 65 years. 

44 

 
 
 
EUROMOD Country Report – HUNGARY 

4.3  Summary of “health warnings” 

•  The sample size is relatively big but in the case of very detailed analysis the number 

of cases may be little. 

•  Possible  underestimation  of  the  self-employment  incomes  should  be  taken  into 

consideration 

•  The introduction of “public work benefit” which allows unemployed people to keep 
their unemployment benefits after the standard period of payment of this benefit if 
they  enrol  in  some  public  work  implies  that  they  would  be  observed  in  SILC  as 
“employees/active”. It is not possible to distinguish this group from other workers and 
therefore the users should take this into consideration when using the model. 

•  Simulation of special tax for self employed are significantly oversimulated due to the 
high number of EU-SILC respondent reporting very low self-employed income. This 
should be kept in mind when using the model. 

•  Tax evasion and non-take up problems are present but it is difficult to assess exactly 

the size of the phenomena. 

•  Poverty rates by age groups are significantly oversimulated and users should be aware 

of this when using the model for poverty analysis. 

•  The original dataset contains very few people among the very low and the very high 
earners, therefore the model is likely to underestimate overall income inequality. 

5.  REFERENCES 

National Accounts Hungary 2019-2022. Hungarian Central Statistical Office; Budapest, 
2023. 
Yearbook  of  Welfare  Statistics  2022.  Hungarian  Central  Statistical  Office;  Budapest 
2023. 
Yearbook of National Tax and Customs Administration 2022 
Euromod I-CUE Feasibility Study: Tax-benefit system in Hungary 2005; Budapest 2006 
EU-SILC User Database Description. EUROSTAT, Luxemburg, 2023. 
Eurostat portal: http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/ 

•  Sources for tax-benefit descriptions/rules 

General sources for tax-benefit descriptions/rules/regulations:  
http://www.magyarorszag.hu 

45 

 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

ANNEX 1. UPRATING FACTORS 

2020 

2021 

2022 

2023 

Source and explanations 

113.2 

119.0 

137.2 

159.8 

Table 1. Uprating factors  
Variable 

Factor  
Reference 
 name 
$HICP 

Harmonised 
Index of 
Consumer 
Prices 
Consumer 
price index 

$f_cpi 

169.5 

171.6 

197.4 

247.0 

upr_xch 

$f_xch 

317.0 

337.1 

382.3 

337.1 

EUROSTAT; AMECO 2022 
spring forecasts for 2022 
values 

Fogyasztói árindex 
Source: STADAT table 
3.6.1. 
child care fee Source: 
Yearbook of Social 
Statistic, Table 3.3 

upr_bmana  $f_bmana 

288.4 

378.4 

491.6 

yem 

$f_yem 

276.6 

300.7 

353.3 

378.4  maternity allowance 
Source: Yearbook of 
Social Statistic 2013, 
Table 3.2 
353.3  wages and saleries 

yse 

$f_yse 

205.0 

243.7 

283.9 

283.9 

poa 

$f_poa 

214.5 

233.8 

296.6 

296.6 

psu 

$f_psu 

174.3 

197.4 

241.6 

197.4 

bfa 

$f_bfa 

209.9 

222.4 

243.9 

222.4 

bun 

$f_bun 

149.0 

113.8 

138.3 

113.8 

46 

Source: HCSO, Stadat 
table 2.1.35 
self-employment income 
Source: National 
Accounts, calculation 
with the Eurostat table 
by the number of self-
eployments by A10 
industry and the 
'Generation of income in 
the household sector by 
industries' table from the 
official National Account 
publication 
old age income Source: 
HCSO, Pensions and 
other benefits 2014 (pdf 
file) 
survivor benefits Source: 
HCSO Publication tables 
(survivor pension) 
total family 
benefits  Source: 
Yearbook of Social 
statistics, chapter 3 
unemployment benefits 
Source: NFSZ yearly 
report1. (pdf file) 
Estimation in 2011 

 
EUROMOD Country Report – HUNGARY 

bhl 

pdi 

$f_bhl 

222.5 

240.0 

266.6 

240.0 

$f_pdi 

85.5 

93.9 

97.2 

93.9 

bsa 

$f_bsa 

197.6 

205.3 

241.0 

205.3 

Source: Yearbook of 
Social statistics 2013, 
Table 10.1;10.2 
Source: HCSO Publication 
tables: Disability pensions 
and disability benefit 
(rokkantsági nyugdíj 
(2011-től rokkantsági 
járadék) és megváltozott 
munkaképességüek 
járadéka) 
social assistance Source: 
Yearbook of Social 
statistics, chapter 6, table 
6.1;6.5;6.16 

afc 
bed 
Constant 
yemdt 

$f_afc 
$f_bed 
$f_const 
$f_yemLead  279.1 

100 
100 
100 

100 
100 
100 
303.4 

100 
100 
100 
353.3 

353.3 

Lead index of average 
earnings 

Note: * The 2023 uprating factors are estimations (except in the cases of CPI). The base of the 
estimations is the AMECO database. 

47 

 
 
 
 
 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

ANNEX 2. POLICY EFFECTS IN 2022-2023 

In this section we analyse the direct tax-benefit policy effect on HDI in Hungary between 2022 
and  2023.  We  try  to  understand  how  changes  (or  non-changes)  to  tax-benefit  policies  have 
affected  household  incomes  in  the  period,  abstracting  from  changes  in  the  population 
characteristics and the distribution of market/original gross incomes. It should be noted that tax-
benefit policies in a given year are taken as of 30th of June. Noteworthy, we do not account for 
any demographic or labour market changes. 

Table 1 and Figure 1 show the effect of 2023 policies on mean equivalised household disposable 
income  by  components  of  income  and  income  decile  group.  This  effect  is  estimated  as  the 
difference between simulated household net income under the 2023 tax-benefit policies (deflating 
monetary  parameters  by  Eurostat’s  Harmonized  Index  of  Consumer  Prices,  HICP)  and  net 
incomes simulated under 2022 policies, as a percentage of mean equivalised household disposable 
income in 2022. 

The total average effect of (deflated) 2023 policies is a decrease in disposable income of 4.5%. 
The main driver of this overall effect is an increase of direct taxes (that reduce household income, 
see negative red bar in Figure 1) and decrease real value of public pensions (negative green bars 
in  Figure  1)  because  the  relatively  large  pension  indexation  did  not  manage  to  compensate 
families for the surge of inflation (around 16% between 2022 and 2023). These effects reduce 
household income on average by 4.5% in real terms. However, the overall effect hides different 
effects across the income distribution: all income decile groups except the tenth, lost more than 
4% of their income in real terms. However, the policy effect across the income distribution is 
driven by different policy changes. For most income decile groups, the decrease in disposable 
household  income  is  mainly  the  result  of  increases  in  direct  taxes  and  social  insurance 
contributions as well as public pensions and benefits not keeping up with the rising increase of 
the cost of living. For the lowest deciles, benefits not keeping up with the rising cost of living in 
real terms (as measured by the HICP) make also up a large part of their disposable income loss 
(0.71% from means-tested benefits, 1.85% from non-means tested benefits, -1.84% from public 
pensions and -0.25% average losses from self-employment SIC).  

Notably,  the  calculated  policy  effects  are  based  on  an  increase  in  the  HICP  of  16,4% 
(EUROSTAT AMECO 2023 spring).  

48 

 
 
 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

Table 1 – Policy Effects 2022-23, using CPI [1.16455327211777] indexation, % 

Decile 

Original 
income 

Public 
pensions 

Means-
tested 
benefits 

1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
Total 

0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 

-1.84 
-1.14 
-1.13 
-0.88 
-0.79 
-0.71 
-0.85 
-0.69 
-0.54 
-0.45 
-0.74 

-0.71 
-0.23 
-0.14 
-0.10 
-0.04 
-0.06 
-0.03 
-0.04 
-0.01 
-0.03 
-0.07 

Non 
means- 
tested 
benefits 
-1.85 
-0.60 
-0.48 
-0.47 
-0.31 
-0.29 
-0.17 
-0.19 
-0.15 
-0.08 
-0.29 

Employee 
SIC 

Self-
employed 
SIC 

Other 
SIC 

Direct 
taxes 

Disposable 
income 

-0.18 
-0.20 
-0.42 
-0.33 
-0.22 
-0.15 
-0.13 
-0.11 
-0.10 
-0.04 
-0.15 

0.25 
0.02 
0.05 
0.00 
0.04 
0.00 
0.00 
0.00 
0.00 
0.01 
0.02 

0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 

-0.79 
-2.98 
-2.56 
-3.04 
-3.16 
-3.73 
-3.64 
-3.92 
-4.10 
-2.65 
-3.26 

-5.12 
-5.13 
-4.67 
-4.81 
-4.47 
-4.94 
-4.83 
-4.95 
-4.89 
-3.25 
-4.50 

Notes:  shown  as  a  percentage  change  in  mean  equalized  household  disposable  income  by  income 
component and income decile group. Income decile groups are based on equalized household disposable 
income in 2022, using the modified OECD equivalence scale. Policy rules for each year have been applied 
to the same input data, deflating monetary parameters of 2023 policies by Eurostat’s Harmonized Index of 
Consumer Prices (HICP). 

Figure 1 – Policy Effects 2022-23, with CPI [1.16455327211777] indexation on dataset 
HU_2021_b1 

%

,
e
m
o
c
n
i

e
l
b
a
s
o
p
s
i
d

n
a
e
m
n
i

e
g
n
a
h
C

4.0

3.0

2.0

1.0

0.0

-1.0

-2.0

-3.0

-4.0

-5.0

-6.0

1

2

3

4

7
6
5
Income decile group

8

9

10

Total

Public pensions
Employee SIC
Direct taxes

Means-tested benefits
Self-employed SIC
Disposable income

Non means- tested benefits
Other SIC

49 

 
 
 
 
 
 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

Table 2 – Policy Effects 2022-23, using custom (1) indexation, % 

Decile 

Original 
income 

Public 
pensions 

Means-
tested 
benefits 

1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
Total 

0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 

1.74 
3.08 
3.64 
4.04 
4.07 
3.43 
4.45 
3.38 
3.20 
2.79 
3.42 

0.01 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 

Non 
means- 
tested 
benefits 
0.87 
0.17 
0.12 
0.06 
0.07 
0.04 
0.03 
0.04 
0.01 
0.01 
0.07 

Employee 
SIC 

Self-
employed 
SIC 

Other 
SIC 

Direct 
taxes 

Disposable 
income 

0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 

-2.46 
-0.70 
-0.29 
-0.20 
-0.15 
-0.10 
-0.09 
-0.04 
-0.03 
-0.04 
-0.19 

0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 
0.00 

-2.38 
-3.40 
-2.84 
-3.08 
-3.21 
-3.76 
-3.71 
-3.90 
-4.07 
-2.70 
-3.37 

-2.22 
-0.85 
0.63 
0.83 
0.77 
-0.39 
0.67 
-0.53 
-0.89 
0.07 
-0.08 

Notes:  shown  as  a  percentage  change  in  mean  equalized  household  disposable  income  by  income 
component and income decile group. Income decile groups are based on equalized household disposable 
income in 2022, using the modified OECD equivalence scale. Policy rules for each year have been applied 
to the same input data, deflating monetary parameters of 2023 policies by Eurostat’s Harmonized Index of 
Consumer Prices (HICP). 

Figure 2 – Policy Effects 2022-23, with custom (1) indexation on dataset HU_2021_b1 

%

,
e
m
o
c
n
i

e
l
b
a
s
o
p
s
i
d

n
a
e
m
n
i

e
g
n
a
h
C

4.0

3.0

2.0

1.0

0.0

-1.0

-2.0

-3.0

-4.0

-5.0

-6.0

1

2

3

4

5

6
Income decile group

7

8

9

10

Total

Public pensions
Non means- tested benefits
Self-employed SIC

Means-tested benefits
Employee SIC
Other SIC

50 

 
 
 
 
 
 
 
 
 
EUROMOD Country Report – HUNGARY 

ANNEX 3. VALIDATION TABLES 

51 

Table A3.1. Original income in EUROMOD - Number of recipients (thousands)

Simulated

EUROMOD

External

Ratio

(Y / N)

2020

2021

2022

2023

2020

2021

2022

2023

2020

2021

2022

2023

4,495
1,914
0

4,495
1,914
0

4,495
1,914
0

4,495
1,914
0

3,443
556
NaN

3,555
586
NaN

3,638
567
NaN

NaN
NaN
NaN

1.31
3.44
NaN

1.26
3.27
NaN

1.24
3.38
NaN

NaN
NaN
NaN

4

2
7
46
3
468

4

2
7
46
3
468

4

2
7
46
3
468

4

NaN

NaN

NaN

NaN

NaN

NaN

NaN

NaN

2
7
46
3
468

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

Earnings (ils_earns)
employment income (yem)
self-employment income (yse)
covid-19 compensation paid by the 
firm (yemmc_s)
Other original income (ils_origy - 
ils_earns)
Regular interhousehold cash 
transfers (xmp)
investment income (yiy)
other incomes (yot)
property income (ypr)
private pension (ypp)
Property transfer (Magánszemélytől 
kapott jövedelem, támogatás) (ypt)

N
N
Y

N

N
N
N
N
N

Continued...

Source

Earnings (ils_earns)
employment income (yem)
self-employment income (yse)
covid-19 compensation paid by the 
firm (yemmc_s)
Other original income (ils_origy - 
ils_earns)
Regular interhousehold cash 
transfers (xmp)
investment income (yiy)
other incomes (yot)
property income (ypr)
private pension (ypp)
Property transfer (Magánszemélytől 
kapott jövedelem, támogatás) (ypt)

https://www.ksh.hu/stadat_files/gdp/hu/gdp0032.html
-
-

-

-
-
-
-
-

Comments

D1 row
-
-

-

-
-
-
-
-

52Table A3.2. Original income in EUROMOD - Annual amounts (millions)

Simulated

EUROMOD

External

Ratio

(Y / N)

2020

2021

2022

2023

2020

2021

2022

2023

2020

2021

2022

2023

Earnings (ils_earns)
employment income (yem)
self-employment income (yse)
covid-19 compensation paid by the 
firm (yemmc_s)
Other original income (ils_origy - 
ils_earns)
Regular interhousehold cash 
transfers (xmp)
investment income (yiy)
other incomes (yot)
property income (ypr)
private pension (ypp)
Property transfer (Magánszemélytől 
kapott jövedelem, támogatás) (ypt)

N
N
Y

N

N
N
N
N
N

13,947,866 15,163,136 17,448,985 20,002,230 17,933,236 19,732,534 23,545,226
NaN
2,657,650
NaN
0

1,853,221
0

2,203,073
0

2,318,407
0

NaN
NaN

NaN
NaN

NaN
NaN
NaN

0.78
NaN
NaN

0.77
NaN
NaN

0.74
NaN
NaN

NaN
NaN
NaN

3,896

3,944

4,538

5,678

4,149
1,823
150,573
6,988
257,894

4,201
1,846
152,439
7,075
280,365

4,832
2,123
175,358
8,138
322,630

6,046
2,657
219,419
10,183
369,839

NaN

NaN
NaN
NaN
NaN
NaN

NaN

NaN
NaN
NaN
NaN
NaN

NaN

NaN

NaN

NaN

NaN

NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

53Table A3.3. Taxes and SIC - Number of payers (thousands)

Simulated

EUROMOD

SILC

Ratio

External

Ratio

(Y / N)

2020

2021

2022

2023

2020

2021

2022

2023 2020 2021 2022 2023

2020

2021

2022

2023 2020 2021 2022 2023

Taxes (ils_tax)

personal income tax (személyi 
jövedelemadó) (tin_s)
 Itemised tax of small taxpayers 
(kisadózó vállalkozások tételes adója) 
(tis_s)
property tax | "PDA 17/7/2012: this 
affect ils_tax and ils_dispy, may affect 
income and poverty distribution in the 
CR" (tpr)
Employee Social Insurance 
Contributions (ils_sicee)
employee social insurance contributions 
(total) (tscee_s)
Self-employed Social Insurance 
Contributions (ils_sicse)
self-employed social insurance 
contributions (total) (tscse_s)
Employer Social Insurance Contributions 
(ils_sicer)
employer social insurance contributions 
(total) (tscer_s)
Credited Contributions (ils_sicct)

Other Contributions (ils_sicot)

Continued...

Taxes (ils_tax)

personal income tax (személyi 
jövedelemadó) (tin_s)
 Itemised tax of small taxpayers 
(kisadózó vállalkozások tételes adója) 
(tis_s)
property tax | "PDA 17/7/2012: this 
affect ils_tax and ils_dispy, may affect 
income and poverty distribution in the 
CR" (tpr)

Y

Y

N

Y

Y

Y

5,231

5,248

3,867

4,923

0

0

0

0 0.00 0.00 0.00 0.00

4,950

4,998

NaN

NaN 1.06 1.05 NaN NaN

505

503

503

500

3,180

3,180

3,180

3,180 0.16 0.16 0.16 0.16

NaN

NaN

NaN

NaN NaN NaN NaN NaN

2,934

2,934

2,934

2,934

2,934

2,934

2,934

2,934 1.00 1.00 1.00 1.00

NaN

NaN

NaN

NaN NaN NaN NaN NaN

4,495

4,443

4,315

4,344

1,761

1,761

1,761

1,761

0

0

0

0

0

0

0 0.00 0.00 0.00 0.00

4,603

4,635

NaN

NaN 0.98 0.96 NaN NaN

0 0.00 0.00 0.00 0.00

693

594

577

NaN 2.54 2.97 3.05 NaN

4,495

4,495

4,495

4,495

530

530

530

530 8.48 8.48 8.48 8.48

NaN

NaN

NaN

NaN NaN NaN NaN NaN

Source

Comments

https://www.ksh.hu/stadat_files/gdp/hu/gdp0027.html

D.51M_01

-

-

-

-

54Continued...

Employee Social Insurance 
Contributions (ils_sicee)
employee social insurance contributions 
(total) (tscee_s)
Self-employed Social Insurance 
Contributions (ils_sicse)
self-employed social insurance 
contributions (total) (tscse_s)
Employer Social Insurance Contributions 
(ils_sicer)
employer social insurance contributions 
(total) (tscer_s)
Credited Contributions (ils_sicct)

Other Contributions (ils_sicot)

Source

Comments

https://www.ksh.hu/stadat_files/gdp/hu/gdp0026.html

D.613

-

-

https://www.ksh.hu/stadat_files/gdp/hu/gdp0026.html

D.611

55Table A3.4. Taxes and SIC - Annual amounts (millions)

Simulated

EUROMOD

SILC

Ratio

External

Ratio

(Y / N)

2020

2021

2022

2023

2020

2021

2022

2023 2020 2021 2022 2023

2020

2021

2022

2023 2020 2021 2022 2023

Taxes (ils_tax)

personal income tax (személyi 
jövedelemadó) (tin_s)
 Itemised tax of small taxpayers 
(kisadózó vállalkozások tételes adója) 
(tis_s)
property tax | "PDA 17/7/2012: this 
affect ils_tax and ils_dispy, may 
affect income and poverty 
distribution in the CR" (tpr)
Employee Social Insurance 
Contributions (ils_sicee)
employee social insurance 
contributions (total) (tscee_s)
Self-employed Social Insurance 
Contributions (ils_sicse)
self-employed social insurance 
contributions (total) (tscse_s)
Employer Social Insurance 
Contributions (ils_sicer)
employer social insurance 
contributions (total) (tscer_s)
Credited Contributions (ils_sicct)

Other Contributions (ils_sicot)

Y

Y

N

Y

Y

Y

2,145,553 2,370,880 2,026,889 3,007,291

0

0

0

0

0.00

0.00

0.00

0.00 2,543,266 2,254,793 3,524,450

NaN 0.84

1.05

0.58 NaN

287,749

286,371

286,371

284,462 -215,562 -215,562 -215,562 -215,562 -1.33 -1.33 -1.33 -1.32

NaN

NaN

NaN

NaN NaN NaN NaN NaN

75,506

76,441

87,934

110,029

75,506

75,506

75,506

75,506

1.00

1.01

1.16

1.46

NaN

NaN

NaN

NaN NaN NaN NaN NaN

2,525,311 2,768,591 3,125,675 3,610,413

532,401

575,657

595,179

682,698

0

0

0

0

0

0

0

0.00

0.00

0.00

0.00 2,844,108 3,196,718 3,863,514

NaN 0.89

0.87

0.81 NaN

0

0.00

0.00

0.00

0.00

NaN

NaN

NaN

NaN NaN NaN NaN NaN

2,440,877 2,350,286 2,268,368 2,600,290

256,180

256,180

256,180

256,180

9.53

9.17

8.85 10.15 2,521,619 2,585,891 2,619,365

NaN 0.97

0.91

0.87 NaN

56Table A3.5. Benefits - Number of recipients (thousands)

Simulated

EUROMOD

SILC

Ratio

External

Ratio

(Y / N)

2020

2021

2022

2023

2020

2021

2022

2023 2020 2021 2022 2023

2020

2021

2022

2023 2020 2021 2022 2023

Pensions (ils_pen)

old age income (öregségi/saját jogú 
nyugdíj) (poa)
disability benefits (rokkantsági 
támogatások) (pdi)
survivor benefits (hozzátartozói jogon 
járó nyugdíj) (psu)
Sickness related Benefits (bhl)

13th month pension payment (poa_s)

Means-tested benefits (ils_benmt)

regular child protection benefit 
(rendszeres gyermekvédelmi támogatás) 
(bchmt_s)
education related income (oktatással 
kapcsolatos támogatás) (bed)
social assistance (szociális segélyek) 
(bsa_s)
housing benefit (bho)

Non-means-tested benefits (ils_bennt)

Other family benefits (includes maternity 
allowance, child care fee and nursing fee) 
(bfaot)
covid-19 compensation paid by the state 
(bwkmcee_s)
maternity grant (anyasági támogatás) 
(bmanc_s)
child care allowance (gyermekgondozási 
segély) (bccnc_s)
child raising support (gyermeknevelési 
támogatás) (bcclt_s)
family allowance (családi pótlék tartásdíj) 
(bchnm_s)
unemployment benefits (munkanélküli 
ellátások) (bunct_s)
Job-seeker allowance (bunnc_s)

other regular benefits (botre)

N

N

N

N

Y

Y

N

Y

N

N

Y

Y

Y

Y

Y

Y

Y

N

2,183

2,183

2,183

2,183

2,183

2,183

2,183

2,183

1.00

1.00

1.00

1.00

2,029

1,997

1,990

NaN 1.08

1.09

1.10 NaN

327

327

327

327

327

327

327

327

1.00

1.00

1.00

1.00

294

282

268

253

1.11

1.16

1.22

1.29

460

460

460

460

460

460

460

460

1.00

1.00

1.00

1.00

117

109

108

103

3.93

4.22

4.26

4.46

272

NaN

272

272

272

NaN 2,183

2,183

272

NaN

272

272

272

1.00

1.00

1.00

NaN 2,183

2,183 NaN NaN 1.00

1.00

1.00

NaN

NaN

NaN

NaN

NaN NaN NaN NaN NaN

NaN 1,997

1,990 NaN NaN 1.09

1.10

140

123

106

101

0

0

0

0

0.00

0.00

0.00

0.00

242

251

224

NaN 0.58

0.49

0.47 NaN

113

113

113

113

113

113

113

113

1.00

1.00

1.00

1.00

NaN

NaN

NaN

NaN NaN NaN NaN NaN

169

164

156

155

328

328

328

328

0.51

0.50

0.48

0.47

79

80

71

NaN 2.14

2.06

2.20 NaN

115

115

115

115

164

164

164

164

0.70

0.70

0.70

0.70

NaN

NaN

NaN

NaN NaN NaN NaN NaN

0

0

0

0

0

0

0

0

80

80

80

80

153

153

153

153

50

50

50

50

935

935

935

935

238

238

238

238

20

0

20

0

18

0

18

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.00

0.00

0.00

0.00

NaN

NaN

NaN

NaN NaN NaN NaN NaN

0

0

0

0

0

0

0

0

0.00

0.00

0.00

0.00

NaN

NaN

NaN

NaN NaN NaN NaN NaN

0.00

0.00

0.00

0.00

102

98

91

NaN 0.79

0.82

0.88 NaN

0.00

0.00

0.00

0.00

151

148

148

NaN 1.02

1.04

1.04 NaN

0.00

0.00

0.00

0.00

32

32

30

NaN 1.56

1.56

1.66 NaN

0.00

0.00

0.00

0.00

1,073

1,072

1,070

NaN 0.87

0.87

0.87 NaN

0.00

0.00

0.00

0.00

NaN

NaN

NaN

NaN NaN NaN NaN NaN

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

NaN

NaN

NaN

NaN

NaN

NaN

NaN NaN NaN NaN NaN

NaN NaN NaN NaN NaN

57Continued...

Pensions (ils_pen)

old age income (öregségi/saját jogú 
nyugdíj) (poa)
disability benefits (rokkantsági 
támogatások) (pdi)
survivor benefits (hozzátartozói jogon 
járó nyugdíj) (psu)
Sickness related Benefits (bhl)

13th month pension payment (poa_s)

Means-tested benefits (ils_benmt)

regular child protection benefit 
(rendszeres gyermekvédelmi támogatás) 
(bchmt_s)
education related income (oktatással 
kapcsolatos támogatás) (bed)
social assistance (szociális segélyek) 
(bsa_s)
housing benefit (bho)

Non-means-tested benefits (ils_bennt)

Other family benefits (includes maternity 
allowance, child care fee and nursing fee) 
(bfaot)
covid-19 compensation paid by the state 
(bwkmcee_s)
maternity grant (anyasági támogatás) 
(bmanc_s)
child care allowance (gyermekgondozási 
segély) (bccnc_s)
child raising support (gyermeknevelési 
támogatás) (bcclt_s)
family allowance (családi pótlék tartásdíj) 
(bchnm_s)
unemployment benefits (munkanélküli 
ellátások) (bunct_s)
Job-seeker allowance (bunnc_s)

other regular benefits (botre)

Source

Comments

https://www.ksh.hu/stadat_files/szo/hu/szo0033.html

-

-

-

-

https://www.ksh.hu/stadat_files/szo/hu/szo0021.html

-

-

-

-

-

-

-

-

https://www.ksh.hu/stadat_files/szo/hu/szo0021.html

stand by allowance

-

-

-

https://www.ksh.hu/stadat_files/szo/hu/szo0005.html

https://www.ksh.hu/stadat_files/szo/hu/szo0005.html

https://www.ksh.hu/stadat_files/szo/hu/szo0005.html

https://www.ksh.hu/stadat_files/szo/hu/szo0005.html

-

-

-

-

-

-

-

-

-

-

-

-

-

58Table A3.6. Benefits - Annual amounts (million)

Simulated

EUROMOD

SILC

Ratio

External

Ratio

(Y / N)

2020

2021

2022

2023

2020

2021

2022

2023 2020 2021 2022 2023

2020

2021

2022

2023 2020 2021 2022 2023

Pensions (ils_pen)

old age income (öregségi/saját jogú 
nyugdíj) (poa)
disability benefits (rokkantsági 
támogatások) (pdi)
survivor benefits (hozzátartozói jogon 
járó nyugdíj) (psu)
Sickness related Benefits (bhl)

13th month pension payment (poa_s)

Means-tested benefits (ils_benmt)

regular child protection benefit 
(rendszeres gyermekvédelmi támogatás) 
(bchmt_s)
education related income (oktatással 
kapcsolatos támogatás) (bed)
social assistance (szociális segélyek) 
(bsa_s)
housing benefit (bho)

Non-means-tested benefits (ils_bennt)

Other family benefits (includes maternity 
allowance, child care fee and nursing 
fee) (bfaot)
covid-19 compensation paid by the state 
(bwkmcee_s)
maternity grant (anyasági támogatás) 
(bmanc_s)
child care allowance (gyermekgondozási 
segély) (bccnc_s)
child raising support (gyermeknevelési 
támogatás) (bcclt_s)
family allowance (családi pótlék tartásdíj) 
(bchnm_s)
unemployment benefits (munkanélküli 
ellátások) (bunct_s)
Job-seeker allowance (bunnc_s)

other regular benefits (botre)

N

N

N

N

Y

Y

N

Y

N

N

Y

Y

Y

Y

Y

Y

Y

N

3,624,378 3,950,487 5,011,611 5,761,831 3,624,378 3,624,378 3,624,378 3,624,378

1.00

1.09

1.38

1.59 4,074,600 4,581,200 5,305,500

NaN 0.89

0.86

0.94 NaN

244,525

268,548

277,986

277,986

244,525

244,525

244,525

244,525

1.00

1.10

1.14

1.14

226,881

256,949

314,483

314,483

226,881

226,881

226,881

226,881

1.00

1.13

1.39

1.39

128,957

139,100

154,516

154,516

128,957

128,957

128,957

128,957

1.00

1.08

1.20

NaN

NaN

417,634

480,153

NaN

NaN 3,624,378 3,624,378 NaN NaN 0.12

1.20

0.13

NaN

NaN

NaN

NaN

NaN

NaN

NaN

NaN

NaN

NaN NaN NaN NaN NaN

NaN

NaN NaN NaN NaN NaN

NaN

NaN

NaN NaN NaN NaN NaN

NaN NaN NaN NaN NaN

1,857

1,653

1,433

1,382

NaN

NaN

NaN

NaN NaN NaN NaN NaN

3,089

3,202

2,866

NaN 0.60

0.52

0.50 NaN

41,184

41,184

41,184

41,184

41,184

41,184

41,184

41,184

1.00

1.00

1.00

1.00

NaN

NaN

NaN

NaN NaN NaN NaN NaN

50,944

50,303

48,053

47,777

31,183

31,183

31,183

31,183

1.63

1.61

1.54

1.53

21,874

22,099

19,487

NaN 2.33

2.28

2.47 NaN

9,770

10,151

11,916

11,916

9,770

9,770

9,770

9,770

1.00

1.04

1.22

1.22

NaN

NaN

NaN

NaN NaN NaN NaN NaN

0

0

0

0

0

0

0

0

5,161

5,161

5,161

5,161

52,492

52,492

52,492

52,492

17,079

17,079

17,079

17,079

249,838

249,838

249,838

249,838

67,937

71,173

84,495

97,815

12,457

12,952

14,232

16,509

0

0

0

0

0

0

0

0

0.00

0.00

0.00

0.00

NaN

NaN

NaN

NaN NaN NaN NaN NaN

NaN

NaN

NaN

NaN

NaN

0

NaN

0

NaN

NaN

NaN

NaN

NaN

0

NaN

0

NaN

NaN

NaN

NaN

NaN

0

NaN

0

NaN NaN NaN NaN NaN

NaN

NaN

NaN

NaN NaN NaN NaN NaN

NaN NaN NaN NaN NaN

6,768

6,434

6,028

NaN 0.76

0.80

0.86 NaN

NaN NaN NaN NaN NaN

57,034

55,748

55,771

NaN 0.92

0.94

0.94 NaN

NaN NaN NaN NaN NaN

11,018

10,824

10,250

NaN 1.55

1.58

1.67 NaN

NaN NaN NaN NaN NaN

304,887

305,478

305,078

NaN 0.82

0.82

0.82 NaN

0

0.00

0.00

0.00

0.00

NaN NaN NaN NaN NaN

0

0.00

0.00

0.00

0.00

NaN

NaN

NaN

NaN

NaN

NaN

NaN

NaN NaN NaN NaN NaN

NaN

NaN

NaN NaN NaN NaN NaN

NaN NaN NaN NaN NaN

59Table A3.7. Distribution of equivalised disposable income

EUROMOD

External

Ratio

2020
2.83
5.32
6.60
7.66
8.61
9.69
10.74
12.20
14.31
22.04
2,134,673
2,341,629
28.08
4.46

2021
2.85
5.36
6.58
7.66
8.59
9.62
10.73
12.16
14.27
22.18
2,337,437
2,566,769
28.11
4.44

2022
2.76
5.33
6.71
7.69
8.67
9.71
10.95
12.24
14.35
21.59
2,906,444
3,180,715
27.72
4.44

2023
2.72
5.26
6.68
7.62
8.68
9.60
10.85
12.24
14.34
22.02
3,180,126
3,546,372
28.21
4.56

2020
3.30
5.50
6.50
7.40
8.50
9.60
10.70
12.10
14.30
22.10
2,325,035
2,577,258
27.60
4.15

2021
3.50
5.80
6.60
7.50
8.40
9.30
10.30
11.70
13.90
23.00
2,500,546
2,814,591
27.40
3.99

2022
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN

2023
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN

2020
0.86
0.97
1.02
1.03
1.01
1.01
1.00
1.01
1.00
1.00
0.92
0.91
1.02
1.08

2021
0.81
0.92
1.00
1.02
1.02
1.03
1.04
1.04
1.03
0.96
0.93
0.91
1.03
1.11

2022
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN

2023
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN

Decile 1
Decile 2
Decile 3
Decile 4
Decile 5
Decile 6
Decile 7
Decile 8
Decile 9
Decile 10
Median
Mean
Gini
S80/20

60Table A3.8. At-risk-of-poverty rates (%) by gender and age

40% median HDI by gender
Total
Males
Females
50% median HDI by gender
Total
Males
Females
60% median HDI by gender
Total
Males
Females
70% median HDI by gender
Total
Males
Females
60% median HDI by age group
0-15 years
16-24 years
25-49 years
50-64 years
65+ years

EUROMOD

External

Ratio

2020

2021

2022

2023

2020

2021

2022

2023

2020

2021

2022

2023

7.38
7.63
7.15

11.21
11.38
11.06

15.89
15.76
16.00

23.07
22.47
23.61

20.69
21.84
14.64
16.17
10.59

7.15
7.36
6.96

10.74
10.94
10.56

15.88
15.66
16.09

22.72
21.95
23.44

21.27
21.74
14.62
16.13
10.24

7.54
7.67
7.42

10.89
11.07
10.72

15.68
15.71
15.65

22.24
21.89
22.56

21.42
22.02
15.06
16.97
7.15

7.70
7.97
7.45

11.05
11.46
10.68

16.03
16.08
15.99

22.38
22.11
22.62

23.64
22.69
15.87
16.36
6.22

5.20
5.60
4.90

8.70
8.90
8.60

12.60
12.20
13.10

23.10
21.90
24.30

11.50
13.90
10.50
13.50
15.40

4.10
4.20
3.90

6.40
6.40
6.40

12.10
11.60
12.60

18.80
17.90
19.60

9.80
11.30
10.10
16.20
13.40

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

1.42
1.36
1.46

1.29
1.28
1.29

1.26
1.29
1.22

1.00
1.03
0.97

1.80
1.57
1.39
1.20
0.69

1.74
1.75
1.78

1.68
1.71
1.65

1.31
1.35
1.28

1.21
1.23
1.20

2.17
1.92
1.45
1.00
0.76

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN

NaN
NaN
NaN
NaN
NaN

61Getting in touch with the EU 

In person 

All over the European Union there are hundreds of Europe Direct centres. You can find the address of the 
centre nearest you online (european-union.europa.eu/contact-eu/meet-us_en). 

On the phone or in writing 

Europe Direct is a service that answers your questions about the European Union. You can contact this 
service: 

— by freephone: 00 800 6 7 8 9 10 11 (certain operators may charge for these calls), 

— at the following standard number: +32 22999696, 

— via the following form: european-union.europa.eu/contact-eu/write-us_en. 

Finding information about the EU 

Online 

Information about the European Union in all the official languages of the EU is available on the Europa 
website (european-union.europa.eu). 

EU publications 

You  can  view  or  order  EU  publications  at  op.europa.eu/en/publications.  Multiple  copies  of  free 
publications can be obtained by contacting Europe Direct or your local documentation centre (european-
union.europa.eu/contact-eu/meet-us_en). 

EU law and related documents 

For access to legal information from the EU, including all EU law since 1951 in all the official language 
versions, go to EUR-Lex (eur-lex.europa.eu). 

EU open data 

The  portal  data.europa.eu  provides  access  to  open  datasets  from  the  EU  institutions,  bodies  and 
agencies.  These  can  be  downloaded  and  reused  for  free,  for  both  commercial  and  non-commercial 
purposes. The portal also provides access to a wealth of datasets from European countries.