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Since March 2015, the unemployment rate is at 3.7% which is lower than previous years. It is estimated that 172,900 people are unemployed in Hungary. The unemployment benefits that Hungary offers cover those individuals who were once employed or self-employed.

An insured person contributes 1.5% of gross monthly earnings, a self-employed person contributes 4% of declared monthly earning, and the employer contributes 3% of gross monthly payroll.

There are two types of unemployment benefits in Hungary, job seeker's benefits/allowance and job seeker's aid/assistance before pension.

The jobseeker's benefit includes the insured must have at least 360 days of coverage in the last 3 years. The insured must be involuntarily unemployed, actively seeking and available for employment or training, and not be receiving an old-age pension, disability pension, or work injury pension. If the unemployment is voluntary, then there is a waiting period of 90 calendar days after registration with the labor center.

The jobseeker's aid states that the insured must have received the jobseeker's benefit for at least 180 days and entitlement is exhausted. They must have at least 200 days of coverage in the last 4 years before unemployment and is not entitled to jobseeker's benefit. The insured could also be within 5 years of the normal retirement age, received the jobseeker's benefit for at least 140 days, and entitlement to the jobseeker's benefit has been exhausted.

Jobseeker's benefits include:

• The benefit is based on 60% of the job seeker's average salary over the previous four years for the first 90 days.
• One day of benefit is paid for every 5 days of coverage, up to a maximum of 270 days.
• The minimum unemployment benefit is equal to 60% of the minimum monthly wage. It is capped and cannot be more than the official minimum wage.
• The maximum unemployment benefit is equal to 120% of the minimum monthly wage.
• Minimum monthly wage is 149,000 forints.

Jobseeker's aid include:

• Benefit is equal to 40% of the minimum monthly wage and is paid for 90 days; 180 days is covered if the insured is at least age 50; or until eligible for the old-age pension.
• Minimum monthly wage is 149,000 forints.

The job seeker must co-operate with National Employment Service. The applicant must report at NFSZ office, take training courses, accept any job deemed suitable, and actively search for work.

Job seeker's assistance before pension is payable for job seekers who apply five years of becoming eligible for old age pension. The benefit amounts to 40% of the monthly minimum wage.

Who is Eligible?

Eligibility for job seeker's allowance:

• Willing and able to work
• Registered as a job seeker
• Not employed
• Not a full time student
• Not on disability allowance
• Not receiving old age pension

Eligibility for job seeker's assistance before pension:

• Registered as a job seeker
• Has received job seeker's allowance for 45 days
• Fulfills requirements for old age pension
• Not receiving sick pay or disability benefits
• Not a registered sole trader
• Wants to work, but is unable to find employment