Pensions to rise annual HUF 24,000 in 2016, says state secretary

Budapest, January 3 (MTI) – The 1.6 percent rise in pensions from January 1 will result in an average increase of 24,000 forints (EUR 76) in pensioners’ incomes, a human resources ministry official said on Sunday.

Bence Retvari, parliamentary state secretary, told a press conference that 2.6 million pensioners will benefit from the hike that will see the average pension rise to 120,825 forints a month.

Since 2011, the nominal value of pensions has increased by 21.6 percent while they have risen by 8.6 percent in real terms, he said.

Retvari said the increase in pensions’ purchasing power will mean that the 1.6 percent increase will make up for the income pensioners lost when the Socialist government scrapped the 13th month pension.

The state secretary noted that the 1.6 percent increase will apply to more than 20 entitlement benefits including widow’s pensions, orphan support, rehabilitation benefits and disability pensions.

The government will continue its programme designed to allow women to retire after 40 years of work, he said, adding that some 150,000 women have taken up the option since the scheme was introduced.

Source: http://mtva.hu/hu/hungary-matters