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← Overview Database of Innovative Social Policies in Europe

Prolonging employment after reaching the statutory retirement age

Country of implementation
Hungary
General short description of the innovation
As of January 1 2004, those who continue working after reaching the retirement age are entitled to a pension rise of 0.5 per cent following each period of 30 days spent in employment.
Target group
Older Workers
Policy Field
  • pension
Type of Policy
  • public
Duration of the policy
2004
Scope of innovation
  • Scope: structural
  • Spatial coverage: national
General description of (intended) objectives and strategies
Employment can be boosted by keeping pensioners willing to work in the labour market by providing signi?cant incentives ? also retrospectively ? for active ageing, namely prolonging employment after reaching the statutory retirement age. Those remaining in employment were previously entitled to a bonus, however, it was considerably less generous: they had to spend at least a full year in employ ment after reaching the retirement age of 62 to become entitled to a 0.3 per cent monthly pension rise. As a result of the new rules the monthly rise increased to 0.5 per cent. Thus, as of January 1 2004, those who continue working after reaching the retirement age are entitled to a pension rise of 0.5 per cent following each period of 30 days spent in employment. / / See article 12 and 21 of Act LXXXI. of 1997 on Social Security Pensions and article 12. of the 168/1997. (X. 6.) Government Regulation. / / http://econ.core.hu/file/download/HLM2005/TheHungarianLabourMarket_2005_onefile.pdf, p136-137 /
Nature of the innovation-short-term perspective
Incentives for active ageing more generous (pensioners willing to work)
Nature of the innovation-long-term perspective
Boosting employment by keeping pensioners willing to work in the labour market
Type of ideal-typical strategy for the innovation
  • others (activation)
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • others (promoting active ageing through higher pensions)
Intended target group
pensioners
Actors involved in policy-making/implementation and/or evaluation
  • beneficiaries/users (those who continue working after reaching the retirement age)
Intended output
  • others (promoting active ageing through higher pensions)
Did the innovation have any outcome related to job quantity?
increase labour market participation by promoting active ageing through higher pensions
Clarification of outcomes in terms of impacting resilience and labour market inclusion
Employment can be boosted by keeping pensioners willing to work in the labour market by providing signi?cant incentives ? those remaining in employment were entitled to a higher monthly pension rise.
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