Part-time employment & pension
There is a lot of misinformation about the impact of part-time work on reaching retirement age and on the amount of the pension.
First, it is worth clarifying that part-time employment is irrelevant in respect of retirement age; and in terms of eligibility it is not proportional.
The condition of the eligibility for the old-age full pension is to reach the retirement age specified by the law and to acquire at least 15 years of service time. It is not relevant whether your job was a full or a part-time job.
However, when calculating the amount of the pension, the length of the service time and the sum of the monthly average incomes are taken into consideration – the latter may be the difference for part-timers. And the key concept is the “minimum wage”.
How insurance period is calculated if the part-time employee’s income is below the minimum wage? Is it lawful that the employer pays less? In which cases is there no disadvantage in determining the pension? You can find a comprehensive overview in our Hungarian blog entry.
If you are interested in this topic please, contact us for more information in English.