Beginning 1 July 2021, Hungary will increase the amount of infant care allowance.
Background
Mothers are entitled to an infant care allowance (Csecsemőgondozási díj) during their maternity leave for a maximum of 168 days following the birth. As of 1 July 2021, the infant care allowance will increase from 70% to 100% of the pre-tax salary. As a result, families will be in better financial circumstances than before since the allowance is only subject to the payment of personal income tax, not to the payment of pension and social security contributions.
In order to be eligible for the benefit, the woman must be insured for a minimum of 365 days in the two years before giving birth. Adoptive parents are entitled to the allowance until the child is 6 months old.
For further information or assistance, please contact your Lockton Global Benefits Consultant.