Formulárész

Formulárész is a concept in Hungarian social policy that aims to provide compensation to families with children. Introduced in 2012, the program is part of a broader effort to address income inequality and support low-income families.

Under the formulárész scheme, families with children aged 0-14 are eligible to receive a lump sum payment of HUF 167,000 (approximately EUR 430) per child per year. This amount is automatically added to their income-based social benefits. The payment is tax-free, meaning families do not have to pay income tax on this additional benefit.

Eligibility for formulárész is based on the family's income level, with families falling below the poverty line (HUF 188,000 per month for a single parent household) being automatically qualified. Families above this threshold still qualify if they meet other specified criteria.

Supporters of the scheme argue that it helps to alleviate poverty and provide a basic level of income support for families in need. Critics, however, argue that the program may create disincentives for certain behaviors, such as employment, by providing a significant portion of income through the program rather than through work.

In 2019, the Hungarian government began to phase out the formulárész program in favor of a new family support scheme, with the latter offering more flexible and modular support structures. Nevertheless, the program remains in place for those already receiving benefits, and its impact on reducing child poverty in Hungary has been recognized by international organizations.