Hungarian government: Pensions to grow in 2018

The government is hiking pension payments by 3 percent in 2018, bringing about a 28.5 percent cumulative increase in their nominal value since 2010, a government official said on Saturday.

The extra 4,000 forints (EUR 12.8) per person will bring the purchasing power of pensions to 10 percent above the 2010 level, Bence Rétvári, the state secretary of the human resources ministry, told a press briefing.

He noted that in November this year pensioners received a one-off extra payment. This payment was possible thanks to strong economic growth, he added.

Rétvári insisted that the centralised pension system was benefitting pensioners, unlike the mixed state and private system run by the Socialist government before 2010, when pensioners lost an entire month’s pension due to the elimination of the 13th month pension.

Other measures such as food vouchers,

VAT cuts for basic food produce and cheaper medicines are also helping the elderly, he said.