Orban to pay women €31,422 for having three kids

Hungarian PM Viktor Orbán introduced a seven-point plan in his “state of the nation” address to encourage young Hungarian couples to bear more children.

Victoria Wystepek
Victoria Wystepek NewsMavens, Europe
Orban to pay women €31,422 for having three kids - NewsMavens
Viktor Orban, Wikimedia Commons

Why this story matters:

Orbán criticized “the West” for responding to the declining birth rate in Europe with more open immigration policies.

“We know the plight of countries with mixed populations,” he stated. “We do not need numbers, but Hungarian children.”

He announced the government’s plan to grant preferential loans of 10 million forint (€31,422) to women under the age of forty who marry for the first time. The government will grant a three year moratorium on the loan after the birth of the couple’s first child. After the birth of the second child, the government will suspend loan repayment for an additional three years and forgive one third of the debt. After the birth of the third child, the loan will be forgiven in its entirety. The plan will also exempt women with four or more children from paying personal income tax for the rest of their lives.

The plan was announced in the wake of protests from Hungarian workers against the newly implemented “slave law” that allows employers to ask staff to work up to 400 hours per year of overtime, up from the previous limit of 250 hours. This “family protection action” plan aims to boost the Hungarian population in response to emigration and declining birth rates, which have contributed to the depleting labor force.

Other benefits for childbearing couples

  • Preferential loans granted by the Family Support Housing Program (CSOK) will be extended to allow families with two children to use it towards purchases of resale homes. Families with two children are now eligible for a housing grant worth 22 million forint (€69,108) and families with three or more children are now eligible for a housing grant worth 35 million forint (€109,944).
  • The government will repay 1 million forint (€3,141) of the mortgage loan for families with two or more children and an additional 1 million forint for every subsequent child. This extended the previous policy which pledged to repay that amount to families with three children and also for every subsequent child.
  • The government will issue a non-repayable 2.5 million forint (€7,853) grant for purchase of a seven-seat car for families with three or more children.
  • The plan pledges to build 21,000 child-care nurseries by 2022.
  • Child care allowances will be given to grandparents.
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