January 2023 brought a number of positive changes to the lives of families: the pension, the minimum wage, the guaranteed minimum wage and several forms of family support will increase significantly, the range of tax-exempt beneficiaries has also been expanded, the Szép card can be used with more flexible conditions than before, and the rules on employees' vacations have been amended rules too. Magyar Hírlap listed the most important novelties one by one.

Pension

The government decree was published in mid-December, according to which pensions will be increased by 15 percent from January 1. In the case of average pensions, the postman will now bring HUF 20,000 to 30,000 more per month, but many can be happy with an even larger amount. Don't forget, another extra money will arrive next month: the 13th monthly pension will be transferred in February, which will also be an increased amount. The retirement age is unchanged this year, and the Women 40 program will also continue. Pensioners can live on at least HUF 900 billion more this year than in 2022.

Minimum wage

The minimum wage increased by 16 percent at the beginning of the year, so in 2023, instead of the previous 200,000 gross, those involved will receive 232,000 forints, which means 154,000 forints net. The guaranteed minimum wage increased by 14 percent, i.e. from HUF 260,000 last year to HUF 296,400 gross. This means HUF 197,000 net. According to estimates, the increase at the beginning of the year affects almost one million workers in Hungary.

The change in the minimum wage also increased the amount of family allowances: the maximum amount of the gyed increased to 324,800 forints, the graduate gyed became 162,000 forints for a bachelor's degree, 207,000 forints for a master's degree, and the home care fee for children rose to 232,000 forints.

Nice card

As of January 9, the Szép card's sub-accounts will cease to exist, that is, the previous accommodation, hospitality and leisure pockets will be combined, so the amount on the card can be used more freely. The change positively affects around fifty thousand service providers and two and a half million users.

Attention motorists

It is useful for motorists to know that, since January 1, it is no longer considered a violation if we do not have a driver's license or traffic permit. Important: the rule does not apply to cars with foreign license plates. Another novelty is that the checks on the 344-kilometer-long border section between Hungary and Croatia will be abolished, since Croatia has also become part of the Schengen area. This also means that the Hungarian-Croatian border fence will be dismantled.

The child comes first

The number of people enjoying tax exemptions has expanded: from now on, mothers under the age of thirty do not have to pay personal income tax, the government also wants to encourage childbearing. It is known that workers under the age of 25, as well as mothers with four or more children, were already exempted from paying social security. Mothers studying in higher education can also be freed from debts of many millions of forints, because according to a new rule, the state will waive the entire student loan debt of students under the age of 30 if they conceive or adopt a child during their studies or within two years of graduation. Similar support has been available for student loans, but in a much narrower range. In the last four years, a total of seven thousand mothers have had their debts of more than six billion forints total due to childbearing.

Labor matters

As of January 1, the labor code was also amended, enabling parents with young children to work under more flexible conditions. For example, the number of "father's days" has doubled, which means that after the birth of their child, men can take ten days off instead of the previous five, which they can take until the end of the second month from the date of birth or the finalization of adoption. Absence pay for the first five days of paternity leave, and forty percent of the absence pay for the second five days. Another change is that from now on all employees can take forty-four working days of parental leave until the child is three years old. This new type of leave is entitled to ten percent of the absence fee. Another help for those with small children is that, at the request of the parents, the employer is obliged to provide employees with part-time work until the child is four years old.

Caring leave is also a new legal institution, the amount of which is five working days per year, and which can be used to take care of relatives who need care due to serious health reasons.

Taxation

As of January 1, the income value limit related to the choice of flat-rate taxation has been abolished, so the individual entrepreneur can choose flat-rate taxation even if the amount of his entrepreneurial income in 2022 exceeds ten times the annual minimum wage (HUF 24 million), and in the case of sole proprietors engaged in retail activities, fifty times that amount (120 million HUF). It is a relief that flat-rate taxpayers only have to submit their tax returns quarterly this year.

Grants

The government also decided that the payment moratorium, which was introduced in the spring of 2020 during the coronavirus epidemic, will end this year and has been extended several times since then. At the same time, they promise that the monthly installments of customers who leave the moratorium will not increase, and for this purpose, they have stipulated in the law that the term will be extended. As of this month, the home renovation subsidy and the car purchase discount for large families have also been discontinued, but the chocolate, the village chocolate, the baby waiting loan, the interest-subsidized chocolate loan, the loan waiver, the VAT refund and the home purchase tax exemption have also remained.

Author: Alíz Czapó

Source: Magyar Hírlap. Photo: Patricia Bodnar