The birth of a child is always a joyful and exciting time in a family’s life, but it also comes with many challenges and can bring significant financial changes. Therefore, it is definitely worth examining what support and benefits parents will be entitled to. Thanks to previous legislative changes, paternal child care benefit is also available in Hungary, meaning that under certain eligibility conditions, not only the mother but also the father can claim the child care benefit (gyed). Therefore, it should be considered which parent should take advantage of the support.

Since the law also allows the parent to work for unlimited period while receiving gyed, choosing paternal child care benefit, i.e. the father claiming gyed, seems like a logical decision. It may happen that the father wants to stay home with the child and the mother returns to work, but typically parents use the paternal child care benefit option if the mother’s income is lower than the father’s or if the mother would only be entitled to child care allowance (gyes).

Who is eligible for gyed and for how much?

An insured parent who has been insured for 365 days within the two years preceding the child’s birth is eligible for gyed.

There is a maximum amount for gyed, which is up to 70% of twice the current minimum wage per month. In 2025, this upper limit is a gross monthly amount of HUF 407,120. From the amount of gyed, 15% personal income tax advance and 10% pension contribution are deducted. If the minimum wage increases, the maximum amount of gyed also increases.

For which time period is paternal child care benefit available?

If the mother was entitled to infant care benefit (csed), then paternal child care benefit can start from the day after the csed expires, or from the day after the corresponding period (168 days) expires, until the child reaches the age of 2, or in the case of twins, until the children reach the age of 3.

If the mother was not entitled to csed, then paternal child care benefit starts from the 169^th day after the child’s birth.

If the father meets the eligibility conditions, the parents can decide at any time to cancel the gyed/gyes already granted to the mother and the father can claim it instead.

How can the father apply for gyed?

To apply for paternal child care benefit, the father must first submit the “Application for childcare allowance” form to the employer. Following this, the employer submits the “Claim for cash benefits from health insurance and sick pay after accidents, as well as cash benefits available on a discretionary basis (EB_IGBEJ_01)” form electronically to the health insurance fund via the SZÜF portal.

The following documents must be attached to the claim:

• the “Application for child care benefit” form filled by the father,
• a copy of the child’s birth certificate,
• a copy of the child’s social security card (TAJ card).

It is very important that if the father submits the claim for gyed while the mother is receiving gyed or gyes, the mother must cancel it:

• in the case of gyed, using the “Application for cancellation of child care benefit” form,
• in the case of gyes, by submitting the “Cancellation of family support benefit” form.

If the mother is not receiving gyes, the decision on this must also be attached to the paternal child care benefit claim.

Can paternal child care benefit be claimed retroactively?

Paternal child care benefit can also be claimed retroactively, which usually occurs if the parents decide later that the father should take advantage of this benefit. Gyed can be claimed retroactively for up to six months from the date of the claim, meaning that the benefit can be established and paid from the first day of the sixth month preceding the date of the claim, provided the eligibility conditions are met.

If the father claims gyed retroactively and the mother received gyed or gyes for this period, the mother must repay the amount of gyed or gyes received to the government office or to the bank account provided by the employer if it is a social security paying agent.

Another way to repay is if the father agrees on the “Claim for child care benefit” form that the amount received unlawfully will be deducted from the paternal child care benefit, and only the difference will be paid to the father.

From the above, it follows that if the mother not only receives gyed but also gyes, even for an older child, she must cancel it because only one of them can claim the benefit. According to the law, all benefits must be in one hand.

Considerations for choosing paternal child care benefit

In the long term, there are many factors to consider before parents decide to have the father take gyed, as this choice can have both advantages and disadvantages. These disadvantages and considerations can include:

• The mother is on unpaid leave from her job to care for her child (has not returned to work), and since it is the father who receives the benefit, the mother’s insurance is suspended from the first day without benefit.
• The mother is required to pay the individual health service contribution to the Hungarian tax authority during the suspension period. In 2025, this monthly amount is HUF 11,800, which is HUF 390 per day. The mother must handle this independently, the employer only informs her of this obligation.
• The employer reports the start and end of the insurance suspension to the Hungarian tax authority on the T1041 form.
• During the suspension of insurance, the mother is not entitled to sick pay in case of incapacity for work.
• If the mother’s insurance suspension exceeds 30 days, her continuous insurance period is interrupted, and the calculation of the time spent in insurance only resumes when she returns to work. She will only be entitled to sick pay based on the number of days spent in insurance after the interruption.
• In addition to the suspension of insurance, the mother also suffers a significant disadvantage in another area, which is that this period will not be counted in the number of years in employment for her future pension due to the lack of benefits.
• Last but not least, it is worth considering the case when the mother does not return to work and plans to have another child. In this case, the mother will not be entitled to csed, and the father cannot be entitled to csed anyway. In this case, the mother – due to the lack of income to be considered and the interrupted insurance relationship – will be entitled to gyes instead of csed from the birth of the child for 168 calendar days, and after this period expires, the father can claim gyed again for this child if he still meets the eligibility conditions.

However, choosing paternal child care benefit is not a disadvantage, if the mother wants to return to work, she will be entitled to leave (for the period of maternity leave and the first six months of unpaid leave taken for childcare) regardless of whether she received gyed.

Furthermore, choosing paternal child care benefit does not disadvantage the mother in calculating a possible severance pay, as the period of maternity leave and unpaid leave taken for childcare must also be taken into account, regardless of whether she received gyed.

Let’s plan consciously for the long term!

It can be financially advantageous for the family if the father takes gyed. However, as our article reveals, it is worth thoroughly considering the questions surrounding the mother’s insurance relationship, especially if the mother does not return to work and the family plans to have more children.

The information collected in our article is general and informative; in reality, each case must be examined individually. For questions regarding individual cases, please contact us with confidence. The experienced payroll experts at WTS Klient Hungary will help our clients find the most optimal solution with personalised advice.

This article provides general information and does not constitute advice.

A Paternal child care benefit: A flexible option for families, but is it worth it? bejegyzés először WTS Klient Hungary | tax | accounting | payroll | advisory | HR services | digital solutions | state aid-én jelent meg.

Paternity leave 

Following the birth of their child, fathers are entitled to five days of paid leave, which they may take in one or in several parts until the end of the second month after the child is born. Any income and taxes related to this period of supplementary leave are reimbursed to the employer by the Hungarian State Treasury.

Supplementary leave for children

In Hungary, both parents have the right to claim extra paid leave based on the number of children they have, which amounts to two days for one child, four days for two children, and six days for three or more children. This supplementary leave may first be claimed by parents in the year the child is born, and for the last time in the year the child turns 16.

Family tax allowance

Individually or on a shared basis, parents can reduce their consolidated personal income tax base based on the number of children they have. This means the personal income tax base may be reduced by as much as HUF 66,670 (roughly EUR 184) per month with one child, by HUF 133,333 (roughly EUR 368) per child per month with two children, and by HUF 220,000 (roughly EUR 608) per child per month with three or more children. With regard to the amount of tax this translates to a reduction of HUF 10,000, HUF 20,000 and HUF 33,000 (roughly EUR 28, 55 and 91) per eligible dependant. Parents can also claim the family tax allowance from the 91^st day of the pregnancy.

If the personal income tax base is not enough to claim the entire family tax relief, parents may use this allowance (family contribution allowance) for their social security contribution. From 1 July 2020, the previous 1,5% labour market contribution became part of the social security contribution, increasing the basis of the allowance.

Here we need to mention the newlywed allowance too, which can be claimed by couples for 24 months after the wedding where this is the first marriage for at least one of the spouses. Individually, or together, the couple can claim a monthly total tax base allowance of HUF 33,000 (roughly EUR 92), which in practice reduces tax by HUF 5,000 (roughly EUR 14) – regardless whether the couple claims the family tax relief or not.

Extraordinary tax refund 

Until 15 February 2022, families with children can receive an extraordinary tax refund. This tax refund is available for all parents with children eligible for the family tax allowance, and relates to tax paid in 2021 for the following activities: independent and non-independent activity, tax on other income, two-thirds of the simplified contribution to public revenues (EKHO), and one-quarter of the 2021 itemised tax of KATA business-owners raising children. However, personal income tax can be refunded at most up to the tax on the average annual wage calculated based on data from December 2020. The state refunds up to HUF 809,000 (roughly EUR 2,237) as a maximum each to parents paying personal income tax and those under the EKHO scheme.

Personal income tax allowance for the under 25s 

Another new element to the family support benefits affects those under 25. From 1 January 2022, people under 25 do not have to pay personal income tax on their income forming part of the consolidated tax base, i.e. on their wage income, and on income from other non-independent activity and certain independent activities (e.g. fees for services, entrepreneurial income, etc.). There is a ceiling here too. This means that personal income tax does not have to be paid up to an amount corresponding to the average national gross wage published by the Hungarian Central Statistical Office for full-time employees in July of the previous year multiplied by the number of entitlement months; the exemption from personal income tax does not apply to any wage in excess of this amount. 

Crèche and nursery 

Crèche and nursery services for employees’ children may be reimbursed as tax-free benefits based on an invoice, up to the amount of the cost incurred.

Back-to-school vouchers 

In previous years, back-to-school vouchers for primary or secondary school children were a popular element of the fringe benefit system. However, this type of benefit is now subject to the same tax rate as wages. 

Family allowance

Family allowance is the most traditional of family support benefits. The Hungarian state provides a family allowance for parents from the birth of their child until the child finishes his or her education, but no later than the school year in which the child turns 20. The amount of the family allowance has not changed for several years, and payments will continue in 2022 as well. It amounts to HUF 12,200 (roughly EUR 34) for one child, HUF 13,300 (roughly EUR 37) per child in the case of two children, and HUF 16,000 (roughly EUR 44) per child if there are three or more children. Parents raising children on their own – or if the child is terminally ill or seriously disabled – are eligible for a higher family allowance.

Maternity benefit 

Women who attended prenatal care at least four times during their pregnancy are eligible for a state-granted maternity benefit amounting to HUF 64,125 (roughly EUR 177) in 2021 and 2022, or HUF 85,500 (roughly EUR 236) in the case of twins.

Family support benefits for childcare

Infant care benefit (csed) is provided for women who had social security for at least 365 days within the two years prior to their child’s birth. Infant care benefit is provided for the duration of maternity leave, i.e. for 168 calendar days.

Child care benefit (gyed) is provided until the child turns two, and is paid to women who had social security for at least 365 days within the two years prior to the child’s birth. In 2021 the ceiling for the child care benefit was set at HUF 234,360 (roughly EUR 648) per month. If the minimum wage for 2022 is accepted at a gross sum of HUF 200,000 (roughly EUR 553), then the child care benefit in 2022 will be capped at HUF 280,000 (roughly EUR 774). With child care benefit the mother is entitled to work regular hours after her child turns six months old.

Child care allowance (gyes) amounts to HUF 28,500 (roughly EUR 79) per child per month in 2021, and this is unlikely to change in 2022 either. With the child care allowance, similarly to the child care benefit, the mother is entitled to work regular hours after the child turns six months old. Parents or grandparents are eligible to receive the child care allowance until the child turns three.

In 2021 and 2022, parents and grandparents raising three or more children may claim child raising support (gyet) of HUF 28,500 (roughly EUR 79) per month while the youngest child is aged between three and eight. With child raising support, however, the parent or grandparent can only work 30 hours a week, or work from home without any working-hour restrictions.

The types of family benefit listed above, applicable in Hungary in 2021 and 2022, are just the most general and typical cases. There are special cases and provisions not elaborated on here, but our payroll specialists are happy to give you more information for your company about any of the family support benefits available in 2021 and 2022.

A Family support benefits in 2021-2022 bejegyzés először WTS Klient Hungary | tax | accounting | payroll | advisory | HR services | digital solutions | state aid-én jelent meg.

Paternity leave 

Following the birth of their child, fathers are entitled to five days of paid leave, which they may take in one or in several parts until the end of the second month after the child is born. Any income and taxes related to this period of supplementary leave are reimbursed to the employer by the Hungarian State Treasury.

Supplementary leave for children 

In Hungary, both parents have the right to claim extra paid leave based on the number of children they have, which amounts to two days for one child, four days for two children, and six days for three or more children. This supplementary leave may first be claimed by parents in the year the child is born, and for the last time in the year the child turns 16.

Family tax allowance

Individually or on a shared basis, parents can reduce their consolidated personal income tax base based on the number of children they have. This means the personal income tax base may be reduced by as much as HUF 66,670 (roughly EUR 210) per month with one child, by HUF 133,333 (roughly EUR 420) per child per month with two children, and by HUF 220,000 (roughly EUR 690) per child per month with three or more children. With regard to the amount of tax this translates to a reduction of HUF 10,000, HUF 20,000 and HUF 33,000 (roughly EUR 31, 63 and 104) per child. Parents can also claim the family tax allowance from the 91^st day of the pregnancy.

If the personal income tax base is not enough to claim the entire family tax relief, parents may use this allowance for their healthcare contribution or pension contribution (family contribution allowance).

Here we need to mention the newlywed allowance too, which can be claimed by couples for 24 months after the wedding where this is the first marriage for at least one of the spouses. Individually, or together, the couple can claim a monthly total tax base allowance of HUF 33,000 (roughly EUR 105), which in practice reduces tax by HUF 5,000 (roughly EUR 16) – regardless whether the couple claims the family tax relief or not.

Crèche and nursery 

Crèche and nursery services for employees’ children may be reimbursed as tax-free benefits based on an invoice, up to the amount of the cost incurred.

Back-to-school vouchers 

In previous years, back-to-school vouchers for primary or secondary school children were a popular element of the fringe benefit system. From 2019, however, this type of benefit is subject to the same tax rate as wages.

Family allowance 

The Hungarian state provides a family allowance for parents from the birth of their child until the child finishes his or her education, but no later than the school year in which the child turns 20. It amounts to HUF 12,200 (roughly EUR 38) for one child, HUF 13,300 (roughly EUR 42) per child in the case of two children, and HUF 16,000 (roughly EUR 50) per child if there are three or more children. Parents raising children on their own – or if the child is terminally ill or seriously disabled – are eligible for a higher family allowance.

Maternity benefit 

Women who attended prenatal care at least four times during their pregnancy are eligible for a state-granted maternity benefit amounting to HUF 64,125 (roughly EUR 200) in 2019.

Family benefits for childcare

Infant care benefit (csed) is provided for women who had social security for at least 365 days within the two years prior to their child’s birth. Infant care benefit is provided for the duration of maternity leave, i.e. for 168 calendar days.

Child care benefit (gyed) is provided until the child turns two, and is paid to women who had social security for at least 365 days within the two years prior to the child’s birth. In 2019 the ceiling for the child care benefit is set at HUF 208,600 (roughly EUR 656) per month. With child care benefit the mother is entitled to work regular hours after her child turns six months old.

Child care allowance (gyes) amounts to HUF 28,500 (ca. 90 EUR) per child per month in 2019. With the child care allowance, similarly to the child care benefit, the mother is entitled to work regular hours after the child turns six months old. Parents or grandparents are eligible to receive the child care allowance until the child turns three.

In 2019, parents and grandparents raising three or more children may claim child raising support (gyet) of HUF 28,500 (ca. 90 EUR) per month while the youngest child is aged between three and eight. With child raising support, however, the parent or grandparent can only work 30 hours a week, or work from home without any working-hour restrictions.

Other family benefits

The family benefits listed above, applicable in Hungary in 2019, are just the most general and typical cases. Naturally there are special cases and provisions not elaborated here, but our specialists are happy to give you more information for your company about any of the family benefits available in 2019.

If you want to learn more about what compulsory or optional forms of benefits you can offer to your employees with children, and possibly with preferential tax rates, do not hesitate to contact our payroll team!

A Family benefits in 2019 in Hungary bejegyzés először WTS Klient Hungary | tax | accounting | payroll | advisory | HR services | digital solutions | state aid-én jelent meg.