Social Security

PM Orban says all benefit increases must rely on solid economic growth to keep deficit unaffected

Prime Minister Ludovic Orban said on Monday that pensions will increase because the necessary amounts are earmarked in the state budget, but that whether child allowances will rise depends on the available financial resources, because the budget deficit must not be affected. "We will increase the pensions, we'll raise child allowances.

Major shifts in the pipeline for pension calculation methods

Over 4 million workers and pensioners insured with the country's main and auxiliary social security funds (EFKA and ETEAEP) can expect to see changes and shifts in their pensions and incomes judging by the blueprint the Labor Ministry is expected to send to the General Secretariat of the government on Wednesday, before heading to Parliament.

Gov't seeks to encourage wage increases via contribution cuts

As part of its goal to ease the burden on businesses and to increase disposable incomes, the government has made the final tweaks to its four-year plan to gradually reduce wage contributions.

The plan has been incorporated into the social security bill which will be ratified in Parliament in January and is expected to take effect in July.

The will of the insured

A social security system that doesn't take into account the will of the insured person at all is neither fair not effective. It is unfair and ineffective because its imbalance makes the evasion of social security contributions very attractive.