What is the social projection basis in Hungary?

Calculating benefits and allowances in Hungary

In Hungary, most benefits, allowances, and income thresholds are not defined by law one by one, but projected from specific data. This way when individual benefits or thresholds are increased, not each and every law governing them has to be modified, only the ones governing the various projection bases.

Typical projection bases include:

the minimum wage,
the minimum old-age pension, and
the social projection basis.

For business owners and employers, the most important such number is the current minimum wage. The minimum old-age pension and the social projection basis do not affect standard business operation.

Social projection basis

The social projection basis (“szociális vetítési alap”) is a figure used for the calculation of various benefits and allowances. It was introduced as of January 2023 to separate social services from the pension system; up till then, most social benefits were calculated based on the minimum old-age pension.

Some of the most important benefits and allowances (or the relevant income or fortune caps) calculated from the social projection basis include the following:

Monthly GYES (a type of maternity allowance, short for “gyermekgondozási segítő ellátás”, learn more here)
Allowance for working age people who cannot work (“aktív korúak ellátása”)
Public healthcare allowance (“normatív alapú közgyógyellátás”)
Covering fees at care facilities
Regular child protection allowance (“rendszeres gyermekvédelmi kedvezmény”)
Various leniency applications
Free textbooks (for primary and secondary schools)
Free school meals

Social projection basis in 2026 and beyond

In 2026, the social projection basis is HUF 28,500 monthly. For now, it is the same as the minimum old-age pension, but while the minimum old-age pension will be increased to HUF 120,000 as of January 1, 2027, the social projection basis is expected to stay the same for now.

Payroll for your Hungarian business

While neither the social projection basis nor the minimum old-age pension directly affect your Hungarian business, it is important that you understand the basics of Hungarian social systems so you and your payroll specialist can provide accurate information to your employees.

Helpers Finance provides accountancy, payroll, and HR compliance services to small and medium-sized businesses, with a focus on supporting foreign business owners and managing directors in Hungary. Should you have any questions, feel free to reach out to our team.

FREQUENTLY ASKED QUESTIONS

Are the social projection basis and the minimum old-age pension the same?

No, they are not. The minimum old-age pension used to be the projection basis for various social benefits in Hungary until the end of 2022, but since January 2023, the social projection basis has been used instead. The sum of the social projection basis and the minimum old age pension are the same in 2026, but this will change from 2027, when the minimum old-age pension increases.

Why do you need a social projection basis?

The social projection basis was introduced to separate social benefits from the pension system. If the government wants to increase the minimum old-age pension while leaving income caps relevant for social benefits low, the minimum old-age pension cannot be the projection basis for social benefits.

How does the increase to the minimum old-age pension affect my Hungarian business?

Changes to the minimum old-age pension or the social projection basis do not directly affect your Hungarian business. They affect social benefits provided by the state.

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