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There are no end or end to pension calculation rules, but there is one you’ve probably never heard of that was created specifically to reduce the amount of very high benefits.
The pension calculation method is quite complicated, the most diverse calculations are performed one after the other in order to receive the amount of the state benefit at the end of the process. It describes the method Bankmonitor article, also introducing a strange rule, digression.
The pension basically, it is created by multiplying the average monthly salary by a multiplier. This requires two numbers that prospective retirees are not usually aware of. For the average monthly earnings, first of all, the earnings earned since 1988 are converted to today’s value, with the help of the so-called valorization multiplier.
It is not easy to understand the rules of pension calculationfizkes / Getty Images Hungary
These multipliers are as follows for some years:
- Earnings in 1990: 39,188
- Earnings in 1995: 15,288
- Earnings in 2000: 7,045
- Earnings in 2005: 3,811
- Earnings in 2010: 2,954
- Earnings in 2015: 2,414
- Earnings in 2020: 1,458.
The valorized earnings are then added up and then divided by the number of days on which the person concerned earned income.
Then they arrive at an average daily salary, which they multiply by 365 and then divide by 12, thus obtaining the average salary.
This is the strangest pension rule
This is where the rule of digression comes into play. This stipulates a reduction of average monthly earnings exceeding HUF 372,000. If the calculated average monthly salary is more than HUF 372,000, then 90 percent of the portion from HUF 372,001 to HUF 421,000 and 80 percent of the portion above HUF 421,000 can be taken into account.
The service time are calculated exactly for each day: the days on which the pension claimant was obliged to pay pension contributions or paid pension contributions based on an agreement count. This is rounded to a whole year, but always downwards, so 40.99 years is considered forty.
The longer the length of service, the better the conditions for pension calculation, because this results in the following multipliers:
- For 30 years: 68%
- For 35 years: 73%
- For 40 years: 80%
- For 45 years: 90%
- For 50 years or more: 100%.
The received average salary must be multiplied by this above number, then we get it the final amount of the pension.
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2024-06-12 04:32:45