The Hungarian government has released a decree, published in the 35th issue of the Magyar Közlöny, detailing the valorization multipliers necessary for establishing pensions for those retiring in 2025. This decree modifies the execution of the pension law as outlined in the governmental decree 168/1997.

In calculating the initial pension, as well as early retirement benefits, transitional miners’ pensions, and dance artists' pensions, the existing pension insurance regulations stipulate that the earned pension contributions from January 1, 1988, until the start date of retirement must be considered.

It is acknowledged that earlier earnings cannot be calculated at their original values due to their nominally low amounts today.

Therefore, it is critical to preserve the value of these earnings, adjusting them to current value—this process is referred to as valorization.

Valorization, from a pension insurance perspective, means that the earnings and incomes prior to the calendar year of retirement will be adjusted based on the annual increases in the national net average salary.

For the pensions effective in 2025, earnings from the preceding period must be valorized to the level of the net average salary for the year 2024. Earnings from 1988 to 2022 will be valorized for pensions starting in 2024, while earnings from 1988 to 2023 will be adjusted for those starting in 2025.

The government determines the valorization multipliers for the applicable year based on actual data published by the Central Statistical Office, and these multipliers can only be specified in a separate decree every March post-factum.

However, individuals who have already qualified for pension entitlement in January or February of the current year are not left without benefits pending the announcement of valorization multipliers; legislation stipulates that pension authorities must establish a provisional pension utilizing the valorization multipliers for 2024 until the actual pension is determined.

The Central Statistical Office released data at the end of February 2025 verifying that the net average earnings growth for the previous year was approximately 13.3 percent compared to the prior year, which will inform the valorization multipliers for 2025.

For example, under the new regime, the earnings from 1988 would be multiplied by a factor of 63.115 for pensions starting in 2025, while earnings from 1989 and 1990 would be multiplied by 53.990 and 44.400, respectively.

In contrast, the multipliers for pensions starting in 2024 were 55.706 for 1988 earnings, 47.652 for 1989, and 39.188 for 1990.

In determining retirement benefits and calculating the average earnings that form the basis for pensions, earnings are considered on a calendar year basis, with a comprehensive netting of gross earnings reflecting annual contribution rates and personal income tax reductions.

The decree specifies the following valorization multipliers for pensions established between January 1, 2025, and December 31, 2025:

- 1950: 679.815
- 1960: 297.940
- 1970: 216.495
- 1980: 117.820
- 1990: 44.400
- 2000: 7.982
- 2008: 3.643
- 2009: 3.576
- 2010: 3.347
- 2011: 3.146
- 2012: 3.083
- 2013: 2.938
- 2014: 2.852
- 2015: 2.735
- 2016: 2.539
- 2017: 2.248
- 2018: 2.019
- 2019: 1.813
- 2020: 1.652
- 2021: 1.520
- 2022: 1.294
- 2023: 1.133