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Govʼt turns to pensioners to ease Hungarian labor shortage

Beginning from 2019, the government will eliminate all limitations on hiring pensioners to work, Gergely Gulyás, head of the Prime Ministerʼs Office, said on Thursday, detailing some information made public on Wednesday by Minister of Finance Mihály Varga.

Gulyás presented the government plans in his weekly press conference entitled "Kormányinfo," the tradition begun under his predecessor János Lázár. Pensioners will benefit from two major changes, he said, cited by online news portal hvg.hu.

On the one hand, pensioners will continue receiving pensions even if their income from work reaches 12 times the minimum wage. Also, income from work will be subject only to 15% personal income tax, with no other taxes or contributions. This latter opportunity is currently available only to those who secured work as members of pensionersʼ cooperatives.

Gulyás said that the measures are aimed at easing the labor shortages currently present in the economy.