More than 115,000 Hungarian pensioners have rejoined the workforce, up from around 75,000 at the end of last year, Finance Ministry state secretary András Tállai said in Monday’s issue of Magyar Nemzet.
Growth was supported by the introduction of more exemptions for pensioners from the start of this year, Tállai said. Retirees who go back to work are now exempt from all taxes except the 15 percent personal income tax, he said.
The rollout of the tax exemptions followed the establishment in 2017 of pensioners’ cooperatives which provide the legal foundation for retired Hungarians to work again, mitigating the impact of the labour shortage.
The standard retirement age in Hungary is being gradually raised: Hungarians born in 1955 are eligible for retirement at age 64.
Featured photo illustration by Tibor Illyés/MTI