Hundreds of Thousands for Tens of Thousands
As part of its comprehensive family-friendly policies, the Hungarian government has decided to grant young mothers income tax exemption. In case of full-year eligibility, the provision that went into effect on 1 January will result in up to 899,914 HUF (more than 2,000 Euros) of total tax savings for Hungarian mothers aged 25–30. Student loans are also impacted by the decision.
At the end of September, Prime Minister Viktor Orbán spoke about plans to introduce this scheme in front of the legislature. Ágnes Hornung, the Orbán government’s state secretary for families at the Ministry of Culture and Innovation, announced on 28 December that a new element, which is likely to affect tens of thousands of working mothers, would be added to the family tax system from January. The income tax exemption for those under the age of 25 that went into effect last year has thus been extended to women under 30 who have children.
According to the government decree that was published in the Official Gazette on 28 December, young mothers under 30 will in addition be entitled to all other existing family support benefits, such as the family allowance and supplementary leave.
Extra Help for Students and Women Raising Special Needs Children
As of 1 January, the existing benefits (increased child allowance, food contribution, travel discounts) as well as an additional monthly sum of 10,000 forints (about 25 euros) will be given to parents raising children with a long-term illness or disability. As Ágnes Hornung explained, beginning on 1 January, the government will forgive all student loan debts for women who give birth to or adopt a child while they are still enrolled in higher education or within two years of their programme’s completion. ‘If a female student loan holder under the age of 30 becomes pregnant during her higher education studies or within two years of their completion, she will be eligible to receiving a non-refundable child support payment equal to 100 per cent of her outstanding student loan debt, provided that she submits an application for child support to the student loan organisation,’ Hornung said.
As evidence of its commitment to helping Hungarian families raise their children and to encourage childbearing, the government has also extended the so-called baby expecting loan and the rural housing subsidy for families (CSOK) schemes until 2024.
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