Social Security Programs Throughout the World: Europe, 2010

 

Hungary

Exchange rate: US$1.00 equals 187.77 forints.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1928.

Current laws: 1997 (social security), implemented in 1998; 1997 (social insurance), implemented in 1998; and 1997 (individual account).

Type of program: Social insurance and individual account system.

Coverage

Social insurance: Employed persons, including employed pensioners; members of handicraft and agricultural cooperatives; self-employed persons; apprentices at professional training schools; outside workers; artistic performers; lawyers; public notaries; the clergy; and recipients of unemployment benefits, family allowances, or the child care fee (see Sickness and Maternity).

Voluntary coverage for persons not covered by compulsory insurance, including independent farmers.

Individual account: Mandatory coverage for all persons who are covered by social insurance who were insured on or after June 30, 1998. Voluntary coverage for persons insured before June 30, 1998, or older than age 42 by this date.

Source of Funds

Insured person

Social insurance only: 9.5% of covered monthly earnings.

Social insurance and individual account: 1.5% of covered monthly earnings for social insurance and 8% of covered monthly earnings for the individual account plus administrative fees.

The minimum earnings used to calculate contributions are the monthly minimum wage of 71,500 forints.

The maximum daily earnings used to calculate contributions are 20,420 forints.

The insured's contributions also finance work injury benefits.

Self-employed person

Social insurance only: 32% of declared monthly earnings.

Social insurance and individual account: 24% of declared monthly earnings for social insurance and 8% of declared monthly earnings for the individual account plus administrative fees.

The minimum declared earnings used to calculate contributions are the monthly minimum wage of 71,500 forints.

The self-employed person's contributions also finance work injury benefits.

Employer

Social insurance only: 24% of monthly payroll.

Social insurance and individual account: 24% of monthly payroll for social insurance only; none for the individual account.

The minimum earnings used to calculate contributions are the monthly minimum wage of 71,500 forints.

There are no maximum earnings used to calculate contributions.

The employer's contributions also finance work injury benefits.

Government

Social insurance only: Any deficit in the social insurance system; the cost of temporary disability and regular social annuity benefits (see disability benefits).

Social insurance and individual account: Any deficit in the social insurance system; the cost of temporary disability and regular social annuity benefits (see disability benefits); none for individual account.

Government contributions also finance work injury benefits.

Qualifying Conditions

Old-age pension

Old-age pension (social insurance): Age 62 (women and men) with at least 20 years of service.

Age 60 for insured persons who worked in arduous or unhealthy activities for 10 years (men) or 8 years (women); the retirement age is reduced by 1 year for each additional 5-year period (men) or 4-year period (women) of arduous or unhealthy work.

Partial pension: Age 62 with 15 to 19 years of service (men and women).

Advanced pension: Paid from age 60 (men) or age 59 (women) with at least 40 years of coverage. A reduced advanced pension is paid to insured persons who require no more than 5 more years of coverage to qualify for the full advanced pension.

Deferred pension: The pension may be deferred, except in some professions.

Old-age pensioners may continue to work.

Old-age pensions are payable abroad.

Old-age pension (individual account): Age 62 (men and women).

Disability pension

Disability pension (social insurance): For a nonaccident-related disability pension, the required coverage period varies from at least 2 years of coverage if younger than age 22 up to 20 years of coverage at age 55. For an accident-related disability pension, there is no qualifying period.

The value of the pension varies according to the assessed disability: 100% loss of working capacity and a need for permanent care provided by others (Group I); 100% loss of working capacity but no need for permanent care provided by others (Group II); and at least a 67% loss of working capacity (Group III).

The national medical board assesses the degree of loss in working capacity.

The disability pension is not replaced by the old-age pension at the normal retirement age.

Disability annuity (social insurance): The annuity is paid to persons with disabilities aged 18 to 25 with a 100% loss in working capacity.

Temporary disability and regular social annuity (social insurance): Paid to persons with disabilities whose employment has been terminated. The person must not be eligible for the old-age pension, disability pension, unemployment benefits, sickness benefits, work injury benefits, or the maternity allowance and must not be engaged in work rehabilitation.

Disability pensions are payable abroad.

Survivor pension

Survivor pension (social insurance): The deceased was a pensioner or satisfied the coverage qualifying period for a disability pension at the time of death.

Eligible survivors include a widow(er); divorced spouse; cohabiting partner; children younger than age 16 (age 25 for full-time students, no limit if disabled), including the surviving partner's children; sisters and brothers; grandchildren; dependent parents and grandparents with disabilities or aged 65 or older; and foster parents who had supported the deceased for at least 10 years.

A temporary pension is paid to a spouse who was older than the normal retirement age at the date of marriage and lived with the deceased for more than 5 years or had a child with the deceased; a survivor of an unmarried couple who lived together for at least a year and had a child or lived together for at least 10 years if they have no children; or a spouse who was divorced or separated from the deceased for more than a year and receiving alimony. The temporary pension is continued permanently if the survivor is older than the normal retirement age, is disabled, or has at least two dependent children who are eligible for the orphan's pension.

Survivor pensions are payable abroad.

Old-Age Benefits

Old-age pension (social insurance): The pension is 33% of average earnings for the first 10 years of coverage, 2% for each additional year from 11 to 25 years of coverage, 1% for each additional year from 26 to 36 years of coverage, 1.5% for each additional year from 37 to 40 years of coverage, and 2% for each year exceeding 40 years of coverage.

Average earnings are based on average indexed monthly earnings since 1988.

An insured person who has an individual account receives 75% of the social insurance pension.

Partial pension: A reduced pension is paid with at least 15 years of service.

Advanced pension: Calculated in the same way as the old-age pension.

Deferred pension: The pension is increased by 0.5% for each 30-day period of deferral.

The minimum monthly pension is 28,500 forints with at least 20 years of contributions.

The maximum old-age pension is the insured's average earnings.

Benefit adjustment: Benefits are adjusted annually in January and November according to changes in the consumer price index and net average monthly earnings.

Old-age pension (individual account): The pension depends on the value of the insured's contributions plus accrued interest. The pension is paid as a life annuity or as a lump sum if the insured has less than 180 months of contributions at retirement. A lump sum is paid to the insured's estate if the insured dies before the retirement age.

There is no minimum pension.

There is no maximum pension.

Benefit adjustment: Benefits are adjusted according to a decision of the pension fund, based on an actuarial assessment.

Permanent Disability Benefits

Disability pension (social insurance): The pension for an insured person with less than 25 years of coverage ranges from 37.5% to 47.5% of average earnings (Group III); with 25 years or more of coverage, the pension is 33% of average earnings for the first 10 years of coverage, 2% for each additional year from 11 to 25 years of coverage, 1% for each additional year from 26 to 36 years of coverage, and 1.5% for each year exceeding 36 years of coverage.

The Group II pension is paid at a rate 5% higher than the Group III pension; the Group I pension is paid at a rate 10% higher than the Group III pension.

Average earnings are based on average indexed monthly earnings since 1988.

The minimum monthly disability pension is 30,850 forints (Group I), 29,800 forints (Group II), or 28,500 forints (Group III).

The maximum monthly disability pension is 100% of average earnings.

Disability annuity (social insurance): 32,610 forints a month is paid.

Temporary disability annuity (social insurance): The monthly benefit is 75% of the old-age pension that would be paid to the insured at the normal retirement age.

The minimum monthly temporary disability annuity is 27,000 forints.

Regular social annuity (social insurance): 27,000 forints a month is paid.

Persons receiving disability benefits may continue to work if current earnings are no greater than 80% of earnings before the disability began.

Benefit adjustment: Benefits are adjusted in January and November according to changes in the consumer price index and net average monthly earnings.

Survivor Benefits

Widow(er)'s temporary pension (social insurance): The pension is 60% of the old-age or disability pension that the deceased would have been entitled to at the time of death. The pension is paid for 12 months; may be extended 6 months if the spouse is rearing the deceased's child or until the child is age 3 if the child has a disability.

Widow(er)'s permanent pension (social insurance): The pension is 60% of the old-age or disability pension the deceased would have been entitled to at the time of death. The pension is reduced to 30% if the widow(er) receives an old-age pension, disability pension, or work injury pension in his or her own right.

Grandparent's or parent's pension (social insurance): The pension is 60% of the old-age or disability pension the deceased would have been entitled to at the time of death.

Orphan's pension (social insurance): 30% of the deceased's pension is paid for each orphan; a full orphan or an orphan with a surviving parent with a disability receives 60% of the highest pension of either parent.

The minimum monthly orphan's pension is 24,250 forints per child.

Administrative Organization

Social insurance

Ministry of Social Affairs and Labor (http://www.szmum.gov.hu) supervises the program.

Central Administration of National Pension Insurance (http://www.onyf.hu) administers social insurance benefits through its local branches.

National Health Insurance Fund (http://www.oep.hu) collects contributions through its local branches.

Individual account

Ministry of Finance (http://www.p-m.hu) supervises the pension fund administrators.

Authorized private pension fund administrators manage the individual accounts.

Sickness and Maternity

Regulatory Framework

First law: 1891.

Current law: 1997 (health insurance), implemented in 1998.

Type of program: Social insurance system.

Coverage

Cash sickness benefits: Employed persons, members of cooperatives, apprentices in industrial training, artisans, self-employed persons, independent farmers, performing artists, lawyers, and recipients of unemployment benefits.

Cash maternity benefits: All employed or self-employed women who have worked for at least 180 days in the 2 years before the expected date of childbirth.

Medical benefits: All insured persons eligible for cash sickness benefits, pensioners, beneficiaries of unemployment benefits, recipients of social assistance benefits and allowances, beneficiaries of pensions provided by churches, full-time students who are Hungarian citizens residing in Hungary, and all dependent family members and children. Hungarian citizens in otherwise exempted activities (including dependents) who have no alternative coverage must contribute for medical benefits.

Voluntary coverage for noncitizens residing in Hungary.

Source of Funds

Insured person: 4% of gross monthly earnings for benefits in kind and 2% of gross monthly earnings for cash benefits.

Voluntarily covered persons or persons in an exempted activity contribute a flat rate of 4,950 forints; noncitizens residing in Hungary contribute 50% of the monthly minimum wage (35,750 forints) and 30% of the monthly minimum wage for each child aged 18 or younger.

The monthly minimum wage is 71,500 forints.

The insured's contributions also finance work injury benefits.

Self-employed person: 15% of declared monthly earnings.

The self-employed person's contributions also finance work injury benefits.

Employer: 1.5% of gross monthly income for benefits in kind, 0.5% of gross monthly income for cash benefits, and 1,950 forints a month per employee to the National Health Insurance Fund for medical benefits.

The employer's contributions also finance work injury benefits.

Government: Any deficit; the government reimburses the National Health Insurance Fund for the cost of the child care fee.

Government contributions also finance work injury benefits.

Qualifying Conditions

Cash sickness benefits: Paid for a loss of earning capacity resulting from an incapacity that begins in the first 3 days after insured employment ceases.

The loss of earning capacity must be assessed, certified, and periodically reviewed by a doctor.

Cash maternity benefits

Maternity allowance: The insured must have at least 180 days of coverage in the last 2 years or the expected date of childbirth must be in the first 42 days after insured employment ceases (28 days if currently receiving sickness benefits).

Child care fee: The insured must have at least 180 days of coverage in the 2 years before the date of childbirth. The child must live with the claimant's family and one of the parents must stay at home to care for the child.

Medical benefits: There is no minimum qualifying period.

Sickness and Maternity Benefits

Sickness benefit: The benefit is 60% of average daily gross earnings if the insured has more than 2 years of coverage; 50% with 1 to 2 years of coverage or if hospitalized. If the insured has less than a year of continuous coverage, the benefit is reduced proportionately.

Average daily gross earnings are based on earnings since January 1 of the previous year or the earnings of the last 180 days before the incapacity began.

If the insured has at least 1 year of coverage, the benefit is paid for up to 1 year. If less than 1 year of coverage, the benefit is paid for a period that equals the insured's continuous coverage period immediately before incapacity began.

Sickness benefits are also paid in the case of pregnancy where the insured is not entitled to a maternity allowance, for mothers breastfeeding a hospitalized child older than age 1, or for caring for a sick child. The duration of benefits varies according to the sick child's age and the parents' marital status.

Maternity allowance: The benefit is 70% of daily average gross earnings before the expected date of childbirth. (In the absence of earnings, the current monthly minimum wage is used.) The benefit is paid for 4 weeks before and 20 weeks after the expected date of childbirth or for 24 weeks after the expected date of childbirth, depending on the mother's choice.

Daily average gross earnings are based on earnings since January 1 of the previous year or the earnings of the last 180 days before the expected date of childbirth.

The monthly minimum wage is 71,500 forints.

Child care fee: The benefit is 70% of daily average gross earnings in the previous calendar year, up to 70% of twice the monthly minimum wage (100,100 forints a month). The benefit is paid until the child is age 2.

The monthly minimum wage is 71,500 forints.

Workers' Medical Benefits

Benefits include preventive care; general and specialist care, including basic dental care, hospitalization, and at-home nursing; maternity care; medical rehabilitation; sanatorium care; ambulance services; and medical examinations. Benefits are provided directly through public health service facilities contracted by the National Health Insurance Institute.

The patient is charged for prescription treatment without a referral from a primary health care provider; for the use of a health care provider other than the one specified by the prescribing doctor; for an unnecessary change in the prescription that results in extra costs; for extra services (including a more expensive hospital room and better meals); and for orthodontic braces and dental prostheses.

The value of cost sharing paid by the patient is set by the service provider and may be reduced by the National Health Insurance Fund on an individual basis.

Pharmaceuticals are free when used during inpatient treatment, for the treatment of low-income elderly or persons with disabilities, and for life-saving and other maternity and infant care. In all other cases, the National Health Insurance Fund pays from zero to 100% of the price of outpatient medicine, according to a schedule in law.

Transportation is covered by the health insurance system.

Travel allowances are paid if the insured is referred by a doctor for inpatient or outpatient treatment at a health care institution not accessible by local transportation.

Dependents' Medical Benefits

Benefits include preventive care; general and specialist care, including basic dental care, hospitalization, and at-home nursing; maternity care; medical rehabilitation; sanatorium care; ambulance services; and medical examinations. Benefits are provided directly through public health service facilities contracted by the National Health Insurance Institute.

Cost sharing: The patient is charged for prescription treatment without a referral from a primary health care provider; for the use of a health care provider other than the one specified by the prescribing doctor; for an unnecessary change in the prescription that results in extra costs; for extra services (including a more expensive hospital room and better meals); and for orthodontic braces and dental prostheses.

The value of cost sharing paid by the patient is set by the service provider and may be reduced by the National Health Insurance Fund on an individual basis.

Pharmaceuticals are free when used during inpatient treatment, for the treatment of low-income elderly or persons with disabilities, and for life-saving and other maternity and infant care. In all other cases, the National Health Insurance Fund pays from zero to 100% of the price of outpatient medicine, according to a schedule in law.

Transportation is covered by the health insurance system.

Travel allowances are paid if the insured is referred by a doctor for inpatient or outpatient treatment at a health care institution not accessible by local transportation.

Administrative Organization

Ministry of Social Affairs and Labor (http://www.szmum.gov.hu) supervises the program.

National Health Insurance Fund (http://www.oep.hu), with county health insurance funds, administers cash sickness and maternity benefits.

Hungarian Tax Authority (http://www.apeh.hu) collects contributions.

Specified health care providers, including private providers contracted by the National Health Insurance Institute, provide medical care.

Work Injury

Regulatory Framework

First laws: 1900 and 1907.

Current laws: 1997 (social security), 1997 (social insurance), and 1997 (individual account).

Type of program: Social insurance system.

Note: Benefits are provided under the Old Age, Disability, and Survivors and Sickness and Maternity programs.

Coverage

Employed persons, members of cooperatives, apprentices in industrial training, artisans, self-employed persons, independent farmers, performing artists, lawyers, and recipients of unemployment benefits.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors and Sickness and Maternity.

Self-employed person: See source of funds under Old Age, Disability, and Survivors and Sickness and Maternity.

Employer: See source of funds under Old Age, Disability, and Survivors and Sickness and Maternity. Companies that employ pensioners considered to be entrepreneurs or self-employed pay 5% of gross earnings.

Government: See source of funds under Old Age, Disability, and Survivors and Sickness and Maternity.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period. Accidents that occur while commuting to and from work are covered. Benefits are paid for occupational diseases, according to a schedule in law set by the National Health Insurance Fund.

Temporary Disability Benefits

The monthly benefit is 75% of the old-age pension paid to the insured at the normal retirement age.

The minimum monthly benefit is the monthly regular social annuity.

The regular social annuity is 27,000 forints a month.

Persons receiving benefits may continue to work if the current earnings do not exceed 80% of earnings before the disability began.

The National and the County Medical Expert Committees of the National Health Insurance Fund assess the disability. The decision is reviewed 2 years after the first assessment.

Benefit adjustment: Benefits are adjusted in January and November according to changes in the consumer price index and net average monthly earnings.

Permanent Disability Benefits

Permanent disability pension: The value of the pension varies, according to three groups of assessed disability: 100% loss of working capacity and a need for permanent care provided by others (Group I); 100% loss of working capacity but no need for permanent care provided by others (Group II); and at least a 67% loss of working capacity (Group III).

The pension for an insured person with less than 25 years of coverage ranges from 37.5% to 47.5% of average earnings (Group III); with 25 years or more of coverage, the pension is 33% of average earnings for the first 10 years of coverage, 2% for each additional year from 11 to 25 years of coverage, 1% for each additional year from 26 to 36 years of coverage, and 1.5% for each year exceeding 36 years of coverage.

The Group II pension is paid at a rate 5% higher than the Group III pension; the Group I pension is paid at a rate 10% higher than the Group III pension. The National and the County Medical Expert Committees of the National Health Insurance Fund assess the disability. The decision is reviewed 2 years after the first assessment.

Average earnings are based on average indexed monthly earnings since 1988.

The minimum monthly disability pension is 30,850 forints (Group I), 29,800 forints (Group II), or 28,500 forints (Group III).

The maximum monthly disability pension is 100% of average earnings.

Disability annuity (social insurance): 33,330 forints a month is paid.

Benefit adjustment: Benefits are adjusted in January and November according to changes in the consumer price index and net average monthly earnings.

Work injury allowance: Paid for a loss of working capacity of 16% to 66%. The allowance is 8% of monthly average earnings with a 16% to 25% loss of working capacity, 10% of monthly average earnings with a 26% to 35% loss of working capacity, 15% of monthly average earnings with a 36% to 49% loss of working capacity, or 30% of monthly average earnings with a 50% to 66% loss of working capacity.

Average earnings are based on average indexed monthly earnings since 1988.

Persons receiving benefits may continue to work if the current earnings do not exceed 80% of earnings before the disability began.

The National and the County Medical Expert Committees of the National Health Insurance Fund assess the disability. The decision is reviewed 2 years after the first assessment.

Benefit adjustment: Benefits are adjusted in January and November according to changes in the consumer price index and net average monthly earnings.

Workers' Medical Benefits

Benefits include preventive care; general and specialist care, including basic dental care, hospitalization, and at-home nursing; medical rehabilitation; sanatorium care; and ambulance services. Medicine and appliances are free of charge. Medical benefits are provided directly to patients through public health service facilities contracted by the National Health Insurance Institute.

There is no limit to duration.

Survivor Benefits

Widow(er)'s temporary pension: Paid to a spouse who was older than the normal retirement age at the date of marriage and lived with the deceased for more than 5 years or had a child with the deceased; a survivor of an unmarried couple who lived together for at least a year and had a child or lived together for at least 10 years if they have no children; or a spouse who was divorced or separated from the deceased for more than a year and receiving alimony. The pension is 60% of the old-age or disability pension that the deceased would have been entitled to at the time of death. The pension is paid for 12 months; may be extended 6 months if the spouse is rearing the deceased's child or until the child is age 3 if the child has a disability.

Widow(er)'s permanent pension (social insurance): Paid if the survivor is older than the normal retirement age, is disabled, or has at least two dependent children who are eligible for the orphan's pension. The pension is 60% of the old-age or disability pension the deceased would have been entitled to at the time of death. The pension is reduced to 30% if the widow(er) receives an old-age pension, disability pension, or work injury pension in his or her own right.

The permanent widow(er) pension ceases if the widow(er) remarries.

Grandparent's and parent's pension: The pension is paid to dependent parents and grandparents with disabilities or aged 65 or older. The pension is 60% of the old-age or disability pension the deceased would have been entitled to at the time of death.

Orphan's pension: 30% of the deceased's pension is paid for each orphan younger than age 16 (age 25 if a full-time student, no limit if disabled); a full orphan or an orphan with a disabled surviving parent receives 60% of the highest pension of either parent.

The minimum monthly orphan's pension is 24,250 forints per child.

Administrative Organization

National Health Insurance Fund (http://www.oep.hu) administers work injury benefits.

Hungarian Tax Authority (http://www.apeh.hu) collects contributions.

Central Administration of National Pension Insurance (http://www.onyf.hu) administers cash benefits.

Specified health care providers, including private providers contracted by the National Health Insurance Institute, provide medical care.

Unemployment

Regulatory Framework

First law: 1957.

Current law: 1991 (employment).

Type of program: Social insurance system.

Coverage

Employed and self-employed persons.

Source of Funds

Insured person: 1.5% of gross monthly earnings.

Self-employed person: 2.5% of declared monthly earnings.

Employer: 1% of gross monthly payroll.

Government: None.

Qualifying Conditions

Job seeker's benefit: The insured must have at least 365 days of coverage in the last 4 years; be involuntarily unemployed; actively seeking and available for employment or training; and not be receiving an old-age pension, disability pension, or work injury pension.

In cases of voluntary unemployment or dismissal, there is a waiting period of 90 calendar days after registration with the employment agency.

Job seeker's aid: The insured must have received the job seeker's benefit for at least 180 days and exhausted his or her entitlement to benefits; must have at least 200 days of coverage in the last 4 years before unemployment and not be entitled to job seeker's benefit; or must be within 5 years of the normal retirement age, have received the job seeker's benefit for at least 140 days, and have exhausted his or her entitlement to the job seeker's benefit.

Unemployment Benefits

Job seeker's benefit: The benefit is 60% of gross average earnings of the previous calendar year for the first 91 days; thereafter, 60% of the monthly minimum wage (42,900 forints).

One day of benefits is paid for every 5 days of coverage, up to 270 days of benefits.

The minimum unemployment benefit is 60% of the monthly minimum wage.

The maximum unemployment benefit is 120% of the monthly minimum wage.

The monthly minimum wage is 71,500 forints.

The benefit is suspended if the unemployed person becomes eligible for a birth grant or child care fee benefit or during periods of public work, military service, or imprisonment.

Job seeker's aid: The benefit is 40% of the monthly minimum wage and is paid for 90 days; 180 days if the insured is at least age 50; or until eligible for the old-age pension for older unemployed persons.

The monthly minimum wage is 71,500 forints.

Administrative Organization

Ministry of Social Affairs and Labor (http://www.szmum.gov.hu) provides general supervision.

Public Employment Service (http://www.afsz.hu) administers the program.

Family Allowances

Regulatory Framework

First law: 1938.

Current laws: 1997 (child protection); 1997 (health insurance); 1998 (family support), implemented in 1999; and 2005 (family allowances).

Type of program: Universal system.

Coverage

Hungarian citizens, certain noncitizens residing in Hungary, and migrant workers or refugees who are parents, foster parents, or guardians (including foster home managers).

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost (90% from central government and 10% from local government).

Qualifying Conditions

Family allowances: Paid for a child younger than age 16 (age 23 if a full-time student). The claimant must be the child's parent, guardian (if the child is in a correction center or juvenile prison), or a foster home manager.

Child home care allowance: The allowance is paid to parents who leave work to care for a child younger than age 3 (age 10 if disabled). For twins, the allowance is paid until the children reach the compulsory school age (usually age 6).

Child-rearing support: The benefit is paid to parents who rear three or more children and the youngest is between ages 3 and 8.

Birth grant: Paid to a mother who has completed at least four prenatal examinations (one in the event of a premature birth). The grant is paid to adopting parents if the birth mother completes the required examinations.

Advance on maintenance payments: An amount decided by the court is paid for periods during which child maintenance is not paid if the person who takes care of the child can no longer maintain the child or per capita family income is less than 3 times the minimum old-age pension of 28,500 forints.

Regular child protection support: Paid for a child of a single parent household, with a long-term illness or serious disability, or in full-time higher education. Per capita family income must not exceed 110% of the minimum old-age pension (31,350 forints).

Irregular child protection support: The benefit is awarded by the local government and is paid to families with temporary cash flow problems or to families requiring emergency assistance.

Family Allowance Benefits

Family allowances: For the first child, 12,200 forints a month is paid (13,700 forints for a single parent); for two children, 13,300 forints a month per child (14,800 forints for a single parent); and for three or more children, 16,000 forints a month per child (17,000 forints for a single parent).

For families with a child with a long-term illness or serious disability, 23,900 forints a month is paid per child (25,900 forints per child for a single parent).

For a child in a foster home or living with foster parents, 14,800 forints a month is paid per child.

Schedule of payments: Benefits are paid monthly with an additional payment in July to support schooling costs.

Child home care allowance: The allowance is the minimum monthly old-age pension of 28,500 forints (57,000 forints for twins).

Child-rearing support: The allowance is the minimum monthly old-age pension of 28,500 forints.

Birth grant: A lump sum of 225% of the minimum old-age pension (64,125 forints) is paid after each birth; 300% of the minimum old-age pension (85,500 forints) is paid for twins.

The minimum monthly old-age pension is 28,500 forints.

Advance on maintenance payments: The amount of the benefit is established by the court.

Regular child protection support: 5,000 forints is paid.

Irregular child protection support: A lump sum is paid according to the family's assessed needs.

Benefit adjustment: Benefits are adjusted annually.

Administrative Organization

Ministry of Social Affairs and Labor (http://www.szmum.gov.hu) supervises the program.

Regional Directorates of the Hungarian State Treasury (http://www.allamkincstar.gov.hu) pay benefits.