ADVERTISEMENT

Parliament passes pension law

Retail

New legislation restricting early retirement was passed by Parliament yesterday in a bid to encourage employees in their late 50s to remain in the workforce until the legal retirement age of 62.

In line with the new law, early retirement will remain an option for those past the age of 59 with a minimum of 40 years of employment until 2012. From 2013, the age limit will be raised to 60 and the service time requirement will be 41 years. Early retirement will be also discouraged in the coming years by a widening gap between state retirement benefits paid to early retirees and pensioners who retired at age 62, with a 10% difference at the end of the decade.

Starting from March 2007, pensioners who continue to work will lose exemption from the 8.5% employment tax. As another disincentive to staying employed after early retirement, Parliament has come to the decision that early retirees are not to receive state pension until they reach the age of 62 as long as their monthly salary is higher than the minimum wage. (Magyar Hírlap, Napi Gazdaság, Népszava)

ADVERTISEMENT

Average age of coronavirus patients declining Analysis

Average age of coronavirus patients declining

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.