The gap is getting wider: the purchasing value of pensions is deteriorating dramatically
The purchasing power of pensions compared to salaries will suffer another significant decline in 2025, according to new data from the Central Statistical Office (KSH). The average pension currently accounts for only 48.5 percent of average earnings, while in 2010 this ratio was 65.1 percent.
The gap between pensioners and active workers is growing
The financial situation of pensioners is constantly deteriorating compared to the salaries of active earners. While the purchasing power of pensions improved slightly last year due to government increases, this year they have already fallen by 6.4 percent compared to earnings. This means that wages are growing much faster than pensions, so the relative impoverishment of pensioners is accelerating.
Average pension: 222 thousand, but the majority receive less
According to the 2025 data, the average pension is 222,423 forints, but the median value – where half of pensioners receive less than this – does not even reach 200 thousand forints. Moreover, nearly 300 thousand pensioners – that is, every eighth – live on benefits of less than 120 thousand forints per month.
Among those with altered working capacity, for example, the average amount of disability benefits is only 133 thousand forints, and rehabilitation benefits are barely 67 thousand forints. These amounts no longer ensure a decent living, given rising inflation.
Inflation: the deteriorating standard of living behind the apparent increases
Although the government tried to keep the real value at the same level by adjusting the pensions for inflation after the 2023 pension increases (15% in January + 3.1% in November), this proved to be only a temporary solution. Although the increase at that time resulted in a real increase of 0.2 percent, inflation and wages have since disappeared.
Although pensions increased by 6 percent in 2024, the real value of earnings increased by 9.2 percent, so the relative value of pensions decreased even further.
Related news
Apples have become significantly more expensive in Hungary
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >KSH: industrial production decreased by 2.7 percent in October compared to the same period of the previous year, and increased by 0.5 percent compared to the previous month
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >The price of slaughter pigs has decreased in Hungary and in the EU
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >Related news
The GVH imposed fines of more than 3.7 billion forints on 29 companies in 2025
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >Hungary’s economy in 2025: recovery from slowdown, weaker forint and the increasing importance of corporate strategic decisions 2026 will be a test of resilience
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >NAK: it’s worth buying Hungarian sausages on New Year’s Eve too
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >
