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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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.