In this nine steps, the Hungarian pension is calculated

The Hungarian pension is calculated in an extremely complicated way by the Social Security, which also enforces many equity elements, but also many detailed rules over which time has passed. What they are, about We wrote in detail here.

This year, those born between January 1 and December 31, 1960, will reach the 65 -year retirement age, but anyone who has already met the necessary conditions, such as women4, can claim their pensions. About changes that came into effect in January and expected extra benefits can read here Summary.

Anyone who is curious about the easiest way to get pension calculations to the earthly mortal, is András Farkas from pension expert Get help below, step by step.

According to András Farkas, the pension calculation procedure can be divided into three main parts: the pension range pension multiplier findingTo Defining the net career average and calculating the amount of the pension based on the former two. The process can be divided by nine main steps, the expert said.

Calculation of a pension crowd

Step 1

The number of days of full recognized service (total service time throughout our lives) must be divided by 365, which reveals how many full years of service corresponds. Only the whole numbers can be taken into account from the result of the division, and the fragment year does not matter in this context.

Depending on this number, the pension range pension multiplier Percentage, such as 43 years, has an 86 percent pension crowd.

Calculation of net monthly average earnings

Step 2

The average period The time between January 1, 1988 and the date of retirement. Pension contributions acquired during this year (July 1, 2020) is based on the annual earnings under the basis deduct contributions, then

Step 3

According to the rules applicable in that year deducted from taxesthen

Step 4

Contribution and tax -free annual earnings are multiplied by the year – 13.3 percent higher than 2024 this year – with a multiplier. The exceptions to this is the exception of earnings acquired during the year of retirement and in the year before (this year 2025 and 2024).

Step 5

The resulting, net and valorized annual earnings thus obtained, and this amount should be distributed with the number of days of service recognized since 1 January 1988 with a pension claimant.

Step 6

The resulting daily net earnings Must be multiplied by 365 to determine the average annual earnings, which must be divided by 12 to get the monthly net career earnings.

Step 7

This must be degressed as needed, that is, if it exceeds 372 thousand forints, the earnings exceeding it can only be taken into account.

Calculating the amount of pension

Step 8

Monthly net career average earnings of this thus calculated-contributing, tax-free, valorized and degressed as needed You need to multiply with the pension multiplier described in point 1. So we get the pension starting amount.

Step 9

If someone has obtained eligibility, the starting amount of the pension must be increased by the retirement bonus amount. The essence of the retirement bonus is that if you continue to work after you are retired after your retirement age (65 years), you can increase your pension by half a percent every 30 days. You can only acquire a pension bonus after the 65 -year retirement age is available, and if women’s preferential pension is requested, such a pension increase is not possible – says András Farkas pension expert.