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Thousands of Mothers to Benefit from New Support Scheme

Hungary Today 2023.03.21.

From January this year, the Hungarian government introduced a new support scheme, under which mothers under the age of 30 are exempt from paying personal income tax. In the first month of the year, more than 3,000 mothers already applied for the benefit, which means an average extra of HUF 52,000 (EUR 133) a month for them, reports Hirado.hu based on a report by public television channel M1.

The Hungarian government is putting a lot of emphasis on supporting families, including the baby-expecting loan and the family housing support (CSOK), and most recently the personal income tax benefit for mothers under 30. This benefit is available to mothers over 25 and under 30 who have children born after January 1 2023, with the tax exemption starting from the 91st day of pregnancy. The benefit only applies to over-25s, because due to an earlier decision, young people under 25 are currently exempt from personal income tax.

The maximum amount of the tax relief this year is HUF 75,000 (EUR 190) per month, meaning that this is the amount by which young mothers’ salaries could increase.

This may be combined with the family allowance for children, if applicable, and the tax allowance for first marriages may also be additional. All these factors could add up to an extra HUF 100,000 (EUR 255) a month for families.

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Government Spent 5.5 Percent of GDP on Family Support

The share of work-related family allowances and benefits rose from 24 percent to 80 percent in 2022.Continue reading

In addition, the tax allowance for young mothers is also available during the period when mothers are at home with their children and are entitled to infant care or a childcare allowance. Moreover, the childcare allowance benefits increase the mothers’ income even further during this period.

“Those who have benefited from this will no longer have individual contributions and social security contributions deducted from their previous salary, and now not only this, but also personal income tax will not be deducted from their salary. As a result, their net income will be practically one and a half times what they earned before,” said Sándor Hegedüs, a tax expert for the M1 channel.

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Married Couples Spend Baby-expecting Loan Mainly on Buying Homes

One of the leading banks in Hungary, K&H, has disbursed more than HUF 225 billion in baby-expecting loans over the past three and a half years.Continue reading

Featured photo via Pixabay


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