Family policy in Hungary explained

Family policy in Hungary refers to the government measures that have been passed to increase Hungary's birth rate and to stop the decline of the country's population. Hungary has a family policy that seeks to subsidize childcare for new parents.

History

Hungary's population has been declining since 1980 when the country's population peaked at 10.7 million. It is the country in Europe whose population has been shrinking for the longest time. The main cause is that women on average do not have at least 2.1 or more children, which is needed to keep the population stable (see TFR). No government has reversed this trend since 1980, but there were several visible alterations during the last decades.[1] It fell from 2.17 in 1977 to 1.23 in 2011.[2] The Bokros package, the financial crisis of 2007–2008, and the European debt crisis all accelerated the downward trend.[3]

Current situation

The Second Orbán Government made saving the nation from the demographic abyss a key policy goal. Therefore, it has introduced generous breaks for large families and greatly increased social benefits for all families. Those with three or more children pay virtually no taxes. In just a couple of years, Hungary went from being one of the countries spending the least on families in the OECD to being one of those spending the most.[4] In 2015, it spent almost 4% of its GDP on family-related matters.[5]

Annual number of live births

Total Annual Live Births in Hungary[6] !2010!2011!2012!2013!2014!2015!2016!2017!2018
90,33588,04990,26989,52493,28192,13595,36194,64693,467

Fertility rate

Total fertility rate in Hungary[7] !2000!2001!2002!2003!2004!2005!2006!2007!2008!2009!2010!2011!2012!2013!2014!2015!2016!2017!2018
1.321.311.301.271.281.311.341.321.351.321.251.231.341.351.441.451.531.541.55

Support in salaries

The Orbán Government kept the already existing family allowance (Hungarian: családi pótlék)[8] and further introduced the family tax benefit (Hungarian: családi adókedvezmény).[9]

Marriage support

The government introduced the discount for first married couples (Hungarian: első házasok kedvezménye): newly-married couples receive together 5,000 HUF per month for 24 months after marriage.[10]

Housing support

Since 2015, the CSOK (családi otthonteremtési kedvezmény,) can be utilized by married couples for used or newly-built houses and apartments if they promise to have one, two, three, or four children. The amount of support depends on the number of children that the couple plans to have. At least one of the parents must be under 40 years old. They also have to meet the following requirements: no criminal record and 180 days of social security payment before the request (in case of one or two children) or 2 years of social security payment (in case of 3 or more children). The children - who could be biological or adopted - have to live with the parents to fulfill the criteria. They can get CSOK as a fixed sum of money or as a preferential mortgage rate on housing. The sum can be calculated as follows:[11]

Number of childrenBuying new apartment or house
Area
Buying new apartment or house
Preferential mortgage rate
Buying used apartment or house
Area
Buying used apartment or house
Preferential mortgage rate
1 childMinimum 40 m2 apartment or 70 m2 house600,000 HUFMinimum 40 m2 apartment or house600,000 HUF
2 childrenMinimum 50 m2 apartment or 80 m2 house2,600,000 HUFMinimum 50 m2 apartment or house1,430,000 HUF
3 childrenMinimum 60 m2 apartment or 90 m2 house10,000,000 HUF
+ 10,000,000 HUF fix payment
Minimum 60 m2 apartment or house2,200,000 HUF
4 or more childrenMinimum 60 m2 apartment or 90 m2 house10,000,000 HUF
+ 10,000,000 HUF fix payment
Minimum 70 m2 apartment or house2,750,000 HUF

Families can also refund most of their taxes up to 5 million HUF that they pay for house and building material purchases. Finally, they need to pay only 5% in VAT.[12]

Maternity benefit

The amount of the maternity benefit is equal to the 225% of the minimal pension at the time of birth of the child (64,125 HUF in 2017); in case of twins, it is 300% (85,500 HUF in 2017). It is a one-time support.[13]

Child care allowance

The child care allowance is paid monthly if the child has reached the age of 2. The amount is equal to 70% of either the mother or the father's salary up 140% of the current minimum wage, which was 138,000 HUF in 2018.[14]

Free or reduced cost services for children

Several measures were introduced since 2010 that made services free or cheaper for families with children.

Vaccinations against the following diseases are free and obligatory in Hungary: tuberculosis, diphtheria, tetanus, pertussis, poliomyelitis, haemophilus influenzae, measles, mumps, rubella, hepatitis, streptococcus pneumoniae.[15] The government made vaccinations for other diseases such as chicken pox, both types of meningitis and rotavirus free in 2018.[16]

Children in the first nine years get free textbooks in school since 2017. Those in higher years but living in disadvantaged conditions, suffering from long-term illness, receiving child protection benefit, or living in a large family with three or more children are also entitled to free textbooks. However, the government plans to provide free textbooks for every pupils and students until the final exam.[17] [18]

Children who live in disadvantaged conditions, suffer from long-term illness, get child protection benefit, or live in a large family with three or more children get also free or half-priced meals in nurseries, kindergartens and schools. Meanwhile, others get them on reduced prices.[19] [20]

Those younger than 20 who will get a European driving license in Category B (motor vehicles) may both take a course on the KRESZ (similar to the British Highway Code) for free and try the test for the first time at no charge.[21]

For those getting a successful language exam at the B2 or the C1 level, the price of the exam is refunded by the state if the examinee is under 35 years old.[22]

Children may use public transport free if they are accompanied by an adult and do not attend school yet. Pupils, students and undergraduates may use public transport at half price by showing their student card.[23]

Support for parents

Parents of one child have 2 days extra paid vacation. Parents of two children get 4 days. Parents of three or more children receive seven extra paid vacation days, compared to the average Hungarian.[24]

Support for grandmothers

The Women 40 (Hungarian: Nők 40) program makes it possible for women who have worked 40 years to retire to get more time to spend with grandchildren or with their own parents.[25]

Support of Hungarians outside of Hungary

Maternity benefit (outside of Hungary)

Maternity benefit is a one-off support to Hungarian mothers living abroad and amounts to 64,125 HUF per child. In the case of twins, the amount is 85,500 HUF together.[26]

Baby bond (outside of Hungary)

Every Hungarian parent living outside of Hungary may have a 42,500 HUF account per child. The money stays in the bank and bears interest until the child reach the age of 18, When the person may get the final amount.[27]

See also

Further reading

Notes and References

  1. http://hungarianfreepress.com/2017/05/25/hungarian-action-plan-seeks-to-dramatically-increase-birth-rate-by-2030/ Hungarian Free Press - Hungarian action plan seeks to dramatically increase birth rate by 2030 - May 25, 2017
  2. Web site: Vital statistics, Hungarian Central Statistical Office. ksh.hu. 2015-05-18.
  3. https://www.penzugyiszemle.hu/vitaforum/sikeres-e-a-magyar-csaladpolitika-3 penzugyiszemle.hu - Sikeres e a magyar családpolitika? - István Szilas
  4. https://visegradinsight.eu/the-v4s-greatest-existential-threat05082014/ Visegrad Insight - The V4’s greatest existential threat - Demographic decline and an ageing population - Filip Mazurczak - August 5, 2014
  5. https://www.oecd.org/els/soc/PF1_1_Public_spending_on_family_benefits.pdf OECD - Public spending on family benefits
  6. https://ec.europa.eu/eurostat/databrowser/bookmark/5cf9aeb7-3f0c-44a5-b42c-933e56d04bd3?lang=en
  7. Web site: Fertility rate, total (Births per woman) - Hungary | Data.
  8. http://csalad.hu/2017/05/11/csaladi-potlek-2 csalad.hu - Családi pótlék
  9. http://csalad.hu/2017/05/11/csaladi-adokedvezmeny-2 csalad.hu - Családi adókedvezmény
  10. http://csalad.hu/2017/05/11/elso-hazasok-kedvezmenye-2 csalad.hu - Első házasok kedvezménye
  11. http://csalad.hu/2017/09/24/csaladok-otthonteremtesi-kedvezmenye csalad.hu - Családi Otthonteremtési Kedvezmény
  12. https://www.portfolio.hu/ingatlan/lakas/jo-hirt-kaptak-a-csaladi-hazat-epitok.306455.html portfolio.hu - Jó hírt kaptak a családi házat építők - December 3, 2018
  13. http://csalad.hu/2017/05/11/anyasagi-tamogatas-2 csalad.hu - Anyasági támogatás
  14. http://csalad.hu/2017/05/11/gyermekgondozasi-dij-gyed csalad.hu - Gyermekgondozási díj - GYED
  15. https://www.babaszoba.hu/articles/baba/Kotelezo_es_valaszthato_oltasok_gyerekeknek_Oltasi_rend?aid=20170123132507 babaszoba.com - Kötelező és választható oltások gyerekeknek- Oltási rend - January 23, 2017
  16. https://www.napi.hu/magyar_gazdasag/ot_uj_vedooltas_lehet_ingyenes.648223.html napi.hu - Öt új védőoltás lehet ingyenes
  17. http://eduline.hu/kozoktatas/2017/6/29/Kinek_jar_ingyen_a_tankonyv_Itt_a_valasz_3MT2EQ Kinek jár ingyen a tankönyv szeptembertől? - Eduline - June 29, 2017
  18. http://csalad.hu/2017/05/11/tankonyv-tamogatas-2 csalad.hu - Tankönyvtámogatás
  19. https://magyaridok.hu/belfold/tovabb-bovulo-csaladtamogatasok-1897276/ Magyar Idők - Tovább bővülő családtámogatások - July 3, 2017
  20. http://csalad.hu/2017/05/11/etkezesi-teritesi-dijkedvezmeny csalad.hu - Étkezési térítési díjkedvezmény
  21. http://csalad.hu/2018/06/29/par-nap-es-ingyenes-lesz-a-kresz-vizsga csalad.hu - Pár nap, és ingyenes lesz a KRESZ-vizsga - June 29, 2018
  22. http://eduline.hu/nyelvtanulas/2018/1/5/igy_kaphatod_vissza_a_nyelvvizsga_dijat_577IYE Megvannak a részletek: így kaphatjátok vissza a sikeres nyelvvizsga díját January 5, 2018
  23. https://bkk.hu/apps/docs/ertekesites/helyi_kedvezmenyek.pdf BKK - Helyi közlekedés kedvezményei
  24. http://csalad.hu/2017/09/01/gyermekek-utan-jaro-szabadsag-2 csalad.hu - Gyermekek után járó szabadság
  25. http://www.csalad.hu/2018/05/16/nok-40-nagymama-nyugdij csalad.hu - Nők 40
  26. http://csalad.hu/2017/12/14/a-hataron-tul-elo-magyar-gyermekek-utan-is-jar-csaladtamogatas-januartol csalad.hu - Köldökzsinór Program – a külhoni magyar családok támogatása
  27. http://csalad.hu/2017/12/14/a-hataron-tul-elo-magyar-gyermekek-utan-is-jar-csaladtamogatas-januartol csalad.hu - Köldökzsinór Program – a külhoni magyar családok támogatása