Old Age Allowance
Időskorúak járadéka
Coverage
- Destitute elderly persons who have reached the standard retirement age, but are not eligible for a pension from the social insurance pension scheme.
- Certain groups are excluded from coverage.1
Financing
- The scheme is entirely tax-financed out of the central and local budgets.
Administration
- The administration and organisation of the scheme fall under the jurisdiction of the regions (i.e. review applications, decide on eligibility, and payout benefits) and are carried out by the respective Government Office District Unit (Kormányhivatal Járási Hivatala).
Qualifying Conditions
- Persons who have reached the standard retirement age of the social insurance pension scheme.
- Persons must have no right to a pension from the social insurance pension scheme.
- Persons residing in Hungary.
- Persons with income/assets below subsistence level as defined by law; benefits are means-tested based on the individual’s and household’s income and assets: persons who have reached the standard retirement age and who are living with a spouse or cohabiting partner, if the per capita income, including the income of the spouse, is not higher than HUF 25,630 per month; persons living alone who have reached the standard retirement age but are younger than 75 years of age, and whose monthly income does not exceed HUF 30,150; persons living alone who are 75 years of age or older, and whose monthly income is less than HUF 40,700.
Benefits
- Benefit rates are determined and differentiated based on the age of the elderly person and whether the elderly individual lives alone or not.
- The amount of monthly benefits is based on the sum of benefits minus income of the elderly person and his/her family.
- Benefits are not subject to income tax.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
- Destitute elderly persons who have reached the standard retirement age, but are not eligible for a pension from the social insurance pension scheme.
- Certain groups are excluded from coverage.1
- The scheme is entirely tax-financed out of the central and local budgets.
- The administration and organisation of the scheme fall under the jurisdiction of the regions (i.e. review applications, decide on eligibility, and payout benefits) and are carried out by the respective Government Office District Unit (Kormányhivatal Járási Hivatala).
- Persons who have reached the standard retirement age of the social insurance pension scheme.
- Persons must have no right to a pension from the social insurance pension scheme.
- Persons residing in Hungary.
- Persons with income/assets below subsistence level as defined by law; benefits are means-tested based on the individual’s and household’s income and assets: persons who have reached the standard retirement age and who are living with a spouse or cohabiting partner, if the per capita income, including the income of the spouse, is not higher than HUF 25,630 per month; persons living alone who have reached the standard retirement age but are younger than 75 years of age, and whose monthly income does not exceed HUF 30,150; persons living alone who are 75 years of age or older, and whose monthly income is less than HUF 40,700.
- Benefit rates are determined and differentiated based on the age of the elderly person and whether the elderly individual lives alone or not.
- The amount of monthly benefits is based on the sum of benefits minus income of the elderly person and his/her family.
- Benefits are not subject to income tax.
1 The old age allowance cannot be granted or paid to a person who is in custody or in prison, resident abroad for more than 3 months, or whose right of residence has ceased or who is not residing in the country anymore.
Legal Basis: Act III of 1993 on the Administration of Social Benefits (1993. évi III. törvény a szociális igazgatásról és szociális ellátásokról).