More than 115,000 Hungarian pensioners have rejoined the workforce, up from around 75,000 at the end of last year, Finance Ministry state secretary András Tallai said in Monday’s issue of Magyar Nemzet.
Growth was supported by the introduction of more exemptions for pensioners from the start of this year, Tallai said.
Retirees who go back to work are now exempt from all taxes except the 15 percent personal income tax, he said.
The rollout of the tax exemptions followed the establishment in 2017 of pensioners’ cooperatives which provide the legal foundation for retired Hungarians to work again, mitigating the impact of the labour shortage.
The standard retirement age in Hungary is being gradually raised: Hungarians born in 1955 are eligible for retirement at age 64.
As we wrote before, Hungary’s labour shortage is in critical level. Most guest workers in Hungary are from Ukraine, with almost 44,000 in possession of a work permit at the end of September. Read more details HERE.