Family policy in Hungary

Family policy in Hungary refers to government measures in order to increase the national birthrate and stop the decline of Hungary's population. Hungary's family policy seeks to make childcare economically easier for new parents.

History

The Szabó family, the most famous soap opera in Hungary during the second half of the 20th century. It was a typical depiction of a Hungarian family of that time.

Hungary's population has been declining since 1980 - when the country's population peaked at 10.7 million - and with that it is the country in Europe which has been shrinking for the longest time. The main cause of that is that women on average do not have 2.1 or more babies to keep the population stable (see TFR). There were no governments that could change this declining trend since 1980, however, 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 that downward trend.[3]

Current situation

The Second Orbán Government made saving the nation from the demographic abyss a key aspect and therefore 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 years, Hungary went from being one of the countries that spend the least on families in the OECD to being one of those that do so the most.[4] In 2015, it was almost 4% of GDP.[5]

Annual number of live births

Total Annual Live Births in Hungary[6]
2010	2011	2012	2013	2014	2015	2016	2017	2018
90,335	88,049	90,269	89,524	93,281	92,135	95,361	94,646	93,467

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
1.32	1.31	1.30	1.27	1.28	1.31	1.34	1.32	1.35	1.32	1.25	1.23	1.34	1.35	1.44	1.45	1.53	1.54	1.55

Support in salaries

The Orbán Government kept the earlier existed family allowance (Hungarian: családi pótlék)[8] and beside that introduced the family tax benefit (Hungarian: családi adókedvezmény).[9]

Marriage support

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

Housing support

Since 2015 CSOK (családi otthonteremtési kedvezmény, transl. family housing benefit) can be required by married couples for used or newly built houses and apartments if they promise that they will have one, two, three or four children. The size of support depends on the number of children the couple plans to have. At least one of the parents has to be under 40 years old. They also have to meet the following requirements: unpunished life, 180 days social security payment before the request (in case of one or two children) or 2 years social security payment (in case of 3 or more children). The children - who could be of blood or adoptee - have to live with the parents to fulfill the criteria. They can get CSOK as fix sum of money or as preferential mortgage rates on housing. It can be calculated as follows:[11]

Number of children	Buying 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 child	Minimum 40 m² apartment or 70 m² house	600,000 HUF	Minimum 40 m² apartment or house	600,000 HUF
2 children	Minimum 50 m² apartment or 80 m² house	2,600,000 HUF	Minimum 50 m² apartment or house	1,430,000 HUF
3 children	Minimum 60 m² apartment or 90 m² house	10,000,000 HUF + 10,000,000 HUF fix payment	Minimum 60 m² apartment or house	2,200,000 HUF
4 or more children	Minimum 60 m² apartment or 90 m² house	10,000,000 HUF + 10,000,000 HUF fix payment	Minimum 70 m² apartment or house	2,750,000 HUF

Families can also refund most of their taxes up to 5 million HUF that they paid for house and building material purchases. Finally they need to pay just the 5% 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 twin it is 300% (85,500 HUF in 2017). It is a one-off support.[13]

Child care allowance

The child care allowance is paid monthly from the birth until the child's age of 2. Its size is equal to 70% of the mother's or father's - since one of them can apply for that - salary, but it cannot be higher than 140% of the current minimal wage. (Minimal wage 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.

The vaccinations against the following diseases were 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 free - chicken pox, the two types of meningitis and rotavirus - in 2018.[16]

Children in the first nine classes get free textbooks in school since 2017. Those children who are in higher classes but live in disadvantaged conditions, suffer from long-term illness, get child protection benefit, or live 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]

Those 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 price meals in nurseries, kindergartens and schools. Meanwhile, others get them on reduced prices.[19][20]

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

In case of taking a successful language exam on B2 or C1 level the price of the exam is refunded by the state if the examinee is under 35 years old.[22]

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

Support for parents

Parents of one have 2 days extra paid vacation. Parents of two get 4 days and parents of three or more children receive seven days more of paid vacation than 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 in order to get more time to spend with grandchildren or with their own old parents.[25]

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 case of twins it is 85,500 HUF together.[26]

Baby bond (outside of Hungary)

Every Hungarian parent living outside of Hungary can require 42,500 HUF account per child. This money stays in the bank and bears interest until the child reach the age of 18 years. Then he or she can get the final amount.[27]