The big showdown: Is life better in Romania than Hungary?

From taxes and salaries to cost of living and family benefits, an insightful comparison between Romania and Hungary reveals slight contrasts in quality of life. While it is an ambitious commitment to demonstrate which of the two countries offers a better life, a video showcased some interesting points.

Romania vs Hungary

Recently, Pénzcentrum has made a comparison of life quality in Romania and Hungary, based on an informative YouTube video. The video delved into a detailed comparison of the quality of life between Hungary and Romania, examining over ten objective indicators. Building on insights from a previous analysis comparing Hungary and Slovakia, the creator aimed to determine “where life is better” using measurable factors. While acknowledging that emotional factors like family ties or national identity often influence personal choices, the video concentrated on economic and social metrics to provide an objective evaluation of living conditions in Romania and its neighbour.

Taxation and salaries

Taxation and salaries in Romania show a notable contrast when compared to Hungary. In Romania, the deductions from gross salaries range between 40-45%, which is significantly higher than Hungary’s 33.5%. However, for minimum wage earners, Romania’s deductions drop to 35.7%, which highlights the burden of taxation on higher salaries. When it comes to minimum wage, Romania holds the advantage with both gross and net figures leading in comparison to Hungary. Conversely, Hungary surpasses its neighbour in terms of average earnings, particularly net salaries, due to the higher deductions imposed in Romania.

Unemployment

Unemployment rates reveal a slight disparity as well, with Hungary reporting 4.5% and its neighbour at 5.4% as of January this year. This indicates a marginally healthier job market in Hungary.

VAT

The Value Added Tax (VAT) landscape further distinguishes these two nations. Hungary imposes a VAT rate of 27%, which is considerably higher than Romania’s 19%. Nonetheless, both countries offer reduced VAT rates on certain products; for instance, Hungary applies lower rates on items like milk (18%), medicines (5%), and newspapers (0%), while its neighbour offers reduced rates for food (9%) and books (5%).

Cost of living

In terms of the cost of living, Romania generally presents a lower overall cost compared to Hungary. Renting is also more affordable there, although the difference is less pronounced than the overall cost of living.

Family allowances

Family allowances differ significantly between the two countries. Hungary provides various benefits for families with children up to three years old, including CSED, GYED, and GYES. In contrast, Romanian support extends only up to two years but offers a more substantial allowance at 85% of the salary. While family allowances are higher across the border, Hungary provides more tax relief options for families, particularly those with multiple children and young mothers.

Retirement and life expectancy

Regarding pensions and retirement ages, both countries set the retirement age at 65 for men, while women in Romania can retire earlier at 62, with additional reductions possible for each child raised. The average old-age pension – according to the video – stands at approximately HUF 233,500 (EUR 570) net in Hungary compared to around RON 3,014 (EUR 606). Meanwhile, life expectancy rates are closely aligned between the two nations, with Hungary at 76.9 years and its neighbour slightly lower at 76.6 years as of 2023.

Air quality

Air quality assessments by the European Environment Agency rank Budapest at 242nd out of 372 cities for pollution levels, which is relatively better than Bucharest’s position at 314th, indicating poorer air quality.

Public safety

Finally, public safety statistics suggest that Hungary fares slightly better than Romania; data from the World Population Review indicates scores of 1.5 for Hungary and 1.6 for its neighbour in 2023, reflecting a somewhat safer environment in Hungary.

Read also:

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• PHOTOS: Amazing Roman Catholic parish house inaugurated in Transylvania

Featured image: depositphotos.com