Some 25,000 Hungarian pensioners have re-entered the labour market in the past several months, raising the total number of employed pensioners over 100,000, the finance ministry’s state secretary told daily Magyar Nemzet.
András Tállai noted that pensioners who return to work are exempt from all taxes except for the 15% personal income tax.
The tax exemption, introduced this year, followed the establishment in 2017 of pensioners’ cooperatives which provide the legal foundation for retired Hungarians to work again, mitigating the impact of the labour shortage.
The standard retirement age in Hungary is being gradually raised: Hungarians born in 1955 are eligible for retirement at age 64. The number of employed Hungarians among 15- to 74-year-olds stands at 4,491,600, the latest data from the Central Statistical Office show.