The level of pension increase has been determined exclusively by the inflation flows of the relevant economic year in Hungary since 2012. Pension benefits are increased accordingly to the level of consumer price-index (hereinafter referred to as ’CPI’) planned for the relevant economic year and defined in the annual budgetary act. Provided that the planned annual level of CPI exceeds the planned level with regard to the interim flows, a supplementary measure is taken in November retroactively to January of the same year. Regarding to such measure, the planned inflation in the pensioners’ consumer basket shall be taken into consideration if this is higher than the general CPI.

When determining the level of pension increase the alteration of average net income had also been taken into consideration apart from inflation before 2012. Until 2009 the level of pension increase had been defined by the average of the growth of average net income and that of the consumer price for the relevant economic year. Pursuant to regulations for 2010-2011 the alteration of average net income must have been considered if the planned annual growth of GDP reached 3%. Concerning the supplements in November as well, though, the level of increase in average net income during these years was not to be applied.

Providing that the measure in November is at 1% or is higher than that, it shall be implemented in the form of supplementary pension increase. (Thus, such measure will be built in pensions paid in November.) Provided that the amount of supplement is lower than 1%, the difference in pension increases shall be paid in the form of one-off payment. In such cases the supplement will be built in pensions during the following year (i.e. the joint effect of the level of January increase and the difference shall be exercised).