It Pays to Be a Mother in Hungary

Today in Hungary, state support for women — especially mothers — is a fundamental principle, in stark contrast to the pre-2010 left-wing governments, which offered only minimal benefits to working women who chose to have children. On the occasion of Mother’s Day, Magyar Nemzet reviews the most important policy measures introduced in recent years.

Illustration (Source: Pexels)

Since taking office in 2010, the Fidesz–Christian Democrat (Fidesz-KDNP) government declared Hungary would shift toward being a family-friendly nation. Substantial reforms followed, transforming the system of benefits and allowances available to women, mothers, and families. The government’s goal has consistently been to encourage women to become mothers, and this year it announced even more benefits to make family formation and motherhood easier.

The government supports mothers and families, including through tax exemptions Photo: Pexels

Child Care Benefits, Allowances and Working

The current government's family-friendly focus in policy brought an overhaul of the child care benefits and allowances system. It is now possible for mothers to continue receiving child care benefits while working, creating greater flexibility and financial security. In Hungary, after the conclusion of the Infant Care Benefit (CSED), which ends 168 days after birth, mothers can work with no time and income caps, without losing benefits such as the Child Care Benefit (GYED) or the Child Care Allowance (GYES).

CSED — which amounts to 100% of a mother’s previous gross salary (minus taxes) for 24 weeks or 168 days of maternity leave — is currently not available if the mother engages in paid work in any capacity. However, this may change: future plans propose allowing mothers to retain 70% of CSED even while working.

The GYED amount is based on salary is available until the child turns two — or three in the case of twins — and can be claimed by either parent. 

Crucially, GYED can now be received alongside unlimited income from employment. 

For GYES, employment is not allowed until the child is six months old, after which there are no restrictions.

These measures aim to create a flexible environment where parents can return to work at their own pace without being pressured or penalized financially.

Tax Cuts Unseen in Europe

Recently, the Hungarian Parliament passed four laws designed to make Hungary one of the most family-friendly countries in Europe. The centerpiece of these policies is expanding tax exemption for mothers and reducing the financial burden of raising children. As of July 1st this year, both CSED and GYED will be fully exempt from personal income tax - PIT (SZJA), providing concrete financial relief to families: CSED tax exemption could save families around 78,000 HUF (almost 200 EUR) per month, and GYED around 43,000 HUF (over 106 EUR). CSED payments would would thus reach the level of the mother's gross salary.

Additionally, most mothers will no longer have to pay PIT. 

Mothers with four or more children have long been exempt, and mothers under 30 are also already eligible. Starting October 1st, mothers with three children will also receive lifelong PIT exemption, regardless of age — a benefit that applies even beyond the child-rearing years, throughout their careers.

Mothers with two children will also be eligible, though through a phased approach. Beginning January 1, 2026, a multi-year program will grant PIT exemption to mothers of two, starting with those under 40 and expanding year by year until all such mothers are covered by 2029.

Prime Minister Viktor Orban pointed out that child-rearing is not only a private matter, but also a national interest, and therefore the government will support those who have and are raising children with targeted measures. The PM said: 

the PIT exemption helps families by an average of HUF 109 000 (about 270 EUR) per month.

Younger and Older People Also Fare Better

The government also supports mothers who have taken out student or worker loans by completely or partially waiving loan repayment depending on the number of chilren.

 Since 2023, if a woman has a child before the age of 30, either during her studies or within two years of graduation, her entire student loan debt is forgiven. Previously, partial forgiveness was granted for the second child (50%) and full forgiveness for the third.

Mothers who did not pursue higher education but took out worker loans can also count on the government. Mothers receive additional benefits on the worker loan established for young people between ages 17 and 25. After childbirth, they may pause repayments for up to two years, and a portion of the debt may be forgiven depending on the number of children — similar to the student loan policy.

The government also recognizes motherhood when calculating retirement eligibility. Years spent raising children count toward the 40 years required for early retirement under Hungary’s special women’s pension scheme.

Cover photo: Illustration (Source: Pexels)