NGM: government will preserve the purchasing power of pensions

By: Trademagazin Date: 2025. 03. 28. 10:29

The government is committed to providing stable and predictable living conditions for pensioners. In January this year, the government increased pensions by 3.2 percent, which provided substantial assistance to approximately 2.5 million recipients of pensions and pension-like benefits. The government’s inflation expectation for 2025 has been revised to 4.5 percent, so pensioners will receive a total of HUF 91 billion in compensation in November, the Ministry of National Economy (NGM) announced on Friday.

According to the statement, this means an average of more than HUF 39,600 per person, which the government will provide to all pensioners.

According to the Act on Social Security Pensions, pensions must be increased in January of each year.

In January 2025, the government increased pensions by 3.2 percent, which provided substantial assistance to nearly 2.5 million recipients of pensions and pension-like benefits. The January increase amounted to a total of 200 billion forints annually, or 97,500 forints for an average old-age pensioner – including the 13th month pension adjustment.

According to the law, if the expected inflation for the whole year in September exceeds the amount of the January increase, a correction must be made in November – retroactively from January.

The government’s expectation for 2025 has been changed to 4.5 percent, so it is applying an additional 1.3 percent increase in November, meaning it will pay 91 billion forints in compensation to nearly 2.5 million people receiving retirement benefits and pension-like benefits.