nyugdíjhozzájárulás

Nyugdíjhozzájárulás translates to pension contribution in English. It refers to the mandatory payments made by individuals and employers towards the state pension system. In Hungary, these contributions are a significant part of the social security system, designed to fund the pensions of retirees. Both employees and employers are required to contribute a percentage of the employee's gross salary. The specific rates are set by law and can be subject to change by the government. These contributions are collected by the state treasury and managed by the national pension insurance provider. The purpose of these mandatory payments is to ensure a basic level of income for individuals after they reach retirement age. The system is largely a pay-as-you-go system, meaning current contributions primarily fund current pension payments. However, there are also private pension fund options available, which are separate from the mandatory state contributions. Individuals can also make voluntary contributions to increase their future pension benefits. The calculation of the pension benefit itself depends on several factors, including the number of years contributed, the earnings history, and the contribution rates applied during the working life.