Hungary’s Magyar government has announced a broad package of social, environmental and institutional measures, including a two-stage pay rise for social workers, higher benefits for people with reduced working capacity, major changes to the child protection system and the creation of a new national environmental authority.
Prime Minister Péter Magyar outlined the decisions at a press conference in Budapest, saying the government had inherited a severely depleted budget and social system but would nevertheless honour its election promises.
Social benefits and higher wages
Social workers, including child protection employees and staff supporting education, are set to receive a 25% pay rise in two stages. The first increase is expected in mid-October, followed by a second from 1 January 2027.
Benefits for people with reduced working capacity will rise by 10%, while those over 65 in this category will receive at least HUF 120,000 per month. The measure is expected to help around 238,000 people.
The government also plans to increase the minimum pension from HUF 28,500 to HUF 120,000 from January 2027. Further measures include cheaper firewood, a doubling of funding for the social firewood programme and VAT relief on prescription medicines.
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Child protection system to receive billions
Four juvenile correctional institutions in Aszód, Debrecen, Rákospalota and Nagykanizsa will return to the child protection system from 1 October. The government is allocating HUF 3 billion immediately for their development, with a further HUF 2.5 billion planned through 2028.
The government will not reopen the former Szőlő Street institution in Budapest, which was sold under the previous government.
A separate review of Hungary’s child protection system is also under way. Magyar said the government would publish reports concerning longstanding problems, while a further HUF 10 billion in funding could be allocated to address the system’s most urgent needs.
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New environmental “super-authority” planned
A new independent national environmental authority is planned from 1 January 2027, bringing together responsibilities covering environmental, nature, climate, water, animal protection and forestry matters.
The authority would have particularly strong oversight of battery manufacturing, recycling and disposal. Environmental fines would also become significantly tougher: the maximum penalty for the most serious violations could rise to HUF 5 billion.
A “three strikes” principle is also planned for major companies. Businesses repeatedly violating environmental rules could face a minimum fine equivalent to 0.5% of their annual net revenue, subject to a minimum of HUF 5 million.
The government also plans a major overhaul of Hungary’s waste management system and has announced funding worth tens of billions of forints for planting millions of trees and expanding forests by 2030.
Casino and tobacco concessions under review
The government is preparing a radical restructuring of tobacco and casino concessions and plans to abolish the regulatory role of the Supervisory Authority for Regulated Activities (SZTFH). Magyar suggested that terminating existing concession agreements could be considered, although final decisions have yet to be made.
The government also plans to restore mandatory membership of the Hungarian Medical Chamber for doctors, while launching a new debt-management advisory service for financially struggling families.
Other major decisions
The government will continue granting temporary protection in Hungary to military-age men fleeing the Russia-Ukraine war, despite the EU’s recent decision on the matter. It also plans to review lengthy criminal proceedings, prepare for the full nationalisation of the enforcement system, and expand Hungary’s reserve contribution to the EUFOR Althea peacekeeping mission in Bosnia and Herzegovina.
Meanwhile, Magyar said the newly built weir at the Paks Nuclear Power Plant is maintaining sufficient water levels, allowing the facility to operate close to full capacity. The government is also seeking compensation from Austria over asbestos-contaminated stone transported to Hungary and continues negotiations with Brussels over the EU’s EUR 1 million-per-day migration fine.
