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Nov 11, 2019

Retirees are given incentives to return back to work

András Tállai said retirees who go back to work are now exempt from all taxes except the 15 percent personal income tax.

The finance ministry has announced that more than 115,000 pensioners have rejoined the Hungarian workforce, up from around 75,000 at the end of last year.

State secretary András Tállai said growth was supported by the introduction of more exemptions for pensioners from the start of this year. Retirees who go back to work are now exempt from all taxes except the 15 percent personal income tax, he added.

The state secretary highlighted that 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 labor shortage.

The standard retirement age in Hungary is being gradually raised, as it is across Europe. Hungarians born in 1955 are eligible for retirement at the age of 64.

Photo credit: Origo