In a wider sense support of families is based on a multi-pillar system in the Hungarian society, the elements of which are legal regulations prepared in the spirit of the Constitution. This system cannot be limited to family support services proper only.
The services supporting families were re-regulated in 1998, when a new act was passed which declared that families are the basic units in society, and one of the most important tasks of the state is to provide diversified help for families, and improve the safety of family life and conditions of raising children. The effective act contains the following main solutions for improving the conditions of raising children. Perhaps the most important element of the act is that the benefits pursuant to the Family Support Act are offered as of universal right; the amount of the benefits is defined by law, and they do not depend on considerations by the authorities (local government) or the income of the eligible individual; if the criteria specified by law exist, the amount defined in the regulations has to be paid out.
With regard to benefits the act differentiates in the amount of support according to the number of children, including consideration of twins; it also differentiates according to the health status of care recipients, in so far as it tries to offset the more difficult situation of children or persons of age with long-term illness and severe disability; according to the completeness of the families, in an effort to compensate the more disadvantageous conditions of single parents raising children.
On the basis of the act on family support families raising children may apply for four types of support. Eligibility for family allowance lasts until the child enters the mandatory school attendance age. Family allowance is also payable for individuals without a regular income who study in higher education institutions or participate in the first accredited higher level vocational training in a school system or participate in university or collage training. Since 1 September 2002 the amount of family allowance has been HUF 4,600 for families with one child, it is highest (HUF 12,600) on behalf of an individual with long-term illness or severe disability, and in the case of the most frequent family type, i.e. family with two children, the family allowance is HUF 5,600 per child. The amount of the allowance increases up to three children, and amounts to HUF 7,100 per child for families with three of more children. In the case of single parents the amount paid on behalf of each child is higher, and the Act also interprets the concept of single parenting extensively, and provides that parents or guardians whose spouse or common-law partner performs military or civil services, or e.g. does not have any income, is a recipient of pension, or support related to his/her social situation or health status are to be considered single parents.
The act on family support lists the benefits called childcare allowance (GYES) and child raising support (GYET) under the title of childcare support. It is a guiding principle that only one of these types of support may be paid and only for one parent. Their monthly amount is identical with the lowest amount of old-age pension at any time, and it can be twice as much for childcare benefit payable for twins. In the case of both benefits, the eligibility period is shorter than for family allowance, and while they are paid, the income earning activities of the eligible parent are restricted in accordance with the act. Generally childcare allowance is payable until the child reaches 3 years of age, but in the case of twins it is extended to the year in which the children enter the mandatory school attendance age, while it is payable until the 10th birthday of a child with long-term illness or severe disability. For reasons of equity, the competent minister may also establish or extend this period, especially in case of difficult subsistence of the family, or in consideration of the illness or severe disability of the child; in the latter case the benefit may be paid until the child reaches 14 years of age.
The child raising support may be paid to parents, foster parents or guardians, who raise three of more children in their households, and the support is available between the 3rd and 8th birthdays of the youngest child.
While the family allowance, childcare allowance and child raising support represent support payable regularly up to a specific date, or specific criterion arises, the fourth type of benefit referred to in the Family Support Act, i.e. maternity benefit, is a one-time benefit paid to a mother after confinement, with eligibility being subject to attendance of antenatal consultations at least 4 times during pregnancy. Currently, the amount of maternity benefit equals 2.25 times the lowest amount of old age pension on behalf of a child, and in the case of twins it is three times this amount.
Benefits available on insurance basis
According to the effective legislation benefits available on insurance basis include pregnancy-confinement benefit and childcare benefit (GYED). On the basis of the insurance principle these services are only available for insured people, which means that at the time of eligibility the individual concerned must have been insured for at least 180 days, and for purposes of calculating the benefit, the amount based on which the individual paid the health insurance contribution needs to be taken into account as income.
The pregnancy-confinement benefit and childcare benefit are practically sickness-pay type benefits. The first one is payable to women who take a baby for adoption purposes during the term of maternity leave, providing that the insurance criteria are met. The childcare benefit may be paid after the maternity-confinement benefit until the 2nd birthday of the child. Both benefit amounts are calculated on the basis of 70% of the daily average earnings. The amount of both benefits is capped, and none of them may be higher than twice the minimum wage applicable on the first day of eligibility (in the case of childcare benefit the exact amount is defined in the Budget Act).
Other types of family support
Family support available as of right and not on an insurance basis include aid types, regulated in the Child Protection Act (regular and one-time child protection benefit).
Tax allowances for children were re-introduced in the tax system in the year 2000. On the basis of their volume, the tax allowance is the second most important family support tool after family allowance.
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