Economy Minister: Introducing "14th-Month" Pension in Hungary Is Inevitable

Marton Nagy, Hungary’s Minister of National Economy, says it is inevitable that Hungary will introduce a 14th-month pension — a move he believes would significantly increase retirees’ real income. In a recent interview, Nagy explained that the measure could be rolled out gradually over a two- to three-year period,in weekly increments depending on the strength of the country's economy.

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“The 14th-month pension must be introduced,” Nagy told Index on Monday, following an announcement regarding development projects at Budapest’s Liszt Ferenc International Airport. “It’s the best way to ensure that pensioners share in the benefits of rising real wages,” he added.

According to the Minister of National Economy, 

The full implementation of a 14th-month pension would amount to an 8 percent increase in pensions — an increase that would outpace inflation.

“Since pensions are adjusted annually to match inflation, this extra 8 percent would represent a genuine, measurable rise in real value,” Nagy explained.

The government is now determining the form and timing of the new benefit. Prime Minister Viktor Orban has previously said that the 14th-month pension could be introduced over two to four years, and Nagy agrees with that timeframe. The Minister recalled that when Hungary’s left-wing government eliminated the 13th-month pension years ago, the center-right administration restored it within just two years.

At the time, we brought it back step by step — first one week, then three more weeks — until it became a full extra month benefit,” Nagy said. “But now I’d be more cautious.

Citing the need for budgetary discipline, he said a two- to three-year phase-in period would be the most realistic approach, though no final decision has been made yet.

The issue gained momentum in mid-October, when Prime Minister Orban announced that the government was seriously considering introducing a 14th-month pension. The statement sparked widespread attention, as such a move would not only bring extra income to pensioners but also represent a major fiscal commitment. “We design our pension system for Hungarian seniors, not for Brussels bureaucrats," PM Orban posted on social media. “That’s how it should be. And we’re working full steam ahead on the 14th-month pension.”

Economy Minister Marton Nagy said Hungary’s current economic outlook makes the plan feasible. “We’re in a unique position,” he explained. “The budget can afford tax cuts while also offering families and small businesses fixed 3 percent interest loans. On top of that, a 14th-month pension would be a huge achievement.”

At the same time, he stressed that the government remains fully committed to fiscal stability and responsible budgeting.

To that end, Nagy outlined four fiscal rules that guide government policy:

1. The budget deficit must decrease year by year.

2. Public debt must remain on a sustainable path.

3. Hungary must not fall back under the EU’s excessive deficit procedure.

4. The primary balance must stay close to zero.

As reported by Index, several scenarios are under review for how the 14th-month pension could be phased in. The exact timing will depend on the pace of economic growth and the state of the national budget in the coming years.