Hungarian Prime Minister Péter Magyar has unveiled the Tisza government’s first budget, promising lower income taxes for two million people, doubled family allowances and a major increase in healthcare spending in 2027. The proposed measures also include higher minimum pensions, public-sector pay rises and new funding for child protection.
Tax cuts and doubled family allowances
Presenting the 2027 budget in Parliament on Monday, Magyar described it as a budget of “justice and development”, setting out the priorities of his government’s first full budget.
One of the headline measures is a reduction in personal income tax on the minimum wage to 9%. In addition, around one million people earning less than HUF 680,000 (EUR 1,880) a month will see their income tax reduced. According to Magyar, this will leave them with an average of HUF 20,000 (EUR 55) more each month. He said approximately two million people would benefit from income tax reductions overall.
The government also plans to double family allowances from 2027, fulfilling a key campaign commitment. An additional HUF 300 billion (EUR 828 million) will be allocated to the measure. Existing tax benefits for younger people and mothers will remain in place, including exemptions for mothers under 30 and eligible mothers with two or more children.
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Higher pensions and a new benefit for pensioners
The budget promises significant changes to pensions and social benefits. The minimum pension will quadruple to HUF 120,000 (EUR 330) a month, while lower pensions will receive tiered increases, benefiting around 455,000 pensioners.
The government will retain the 13th-month pension and pay the first half of the 14th-month pension. It also plans to introduce a pensioners’ SZÉP Card in stages by 2030, allowing more than 2.2 million pensioners to spend the benefit on food, medicines and recreation. Those receiving pensions below HUF 500,000 a month will get the first instalment in 2027, backed by HUF 90 billion (EUR 249 million).
Disability and rehabilitation benefits will rise by 10%, with a minimum monthly payment of HUF 120,000. Orphan benefits will increase by 20%, while home-care allowances will rise by 50%.
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HUF 510 billion more for healthcare
Healthcare is another major priority. Under the new Hugonnai Vilma programme, the government plans to allocate HUF 4,604 billion to healthcare in 2027, an increase of HUF 510 billion compared with the previous year.
The additional funding will include HUF 10 billion more for hospital meals and HUF 25 billion for air conditioning. The government says the programme will mark the beginning of a broader effort to rebuild Hungary’s healthcare system.
Pay rises for public-sector workers
The budget also includes pay increases across several public services. Law enforcement workers will receive an average 15% pay rise, affecting around 84,000 people.
Net wages for education support staff will increase by an average of 21.5%, while museum, library and cultural workers will receive an average 10.7% increase. A further HUF 10 billion will be earmarked for pay rises at state-run universities, while HUF 178 billion will support continued salary increases for teachers and justice-sector employees.
More funding for child protection and schools
The government will allocate an additional HUF 20 billion to strengthen child protection in 2027. Plans include 184 new or repurposed residential places, 15 specialist children’s homes and 80 crisis places.
Funding for social and child protection institutions will rise by HUF 115 billion, or 27%, while social workers’ net wages are set to increase by an average of 17.8%.
The Jeney Lajos school development programme will also begin, alongside efforts to improve school meals.
