First, enter the number of qualifying years (which determines the multiplier applied to your earnings). Then provide your annual gross earnings for each year you worked. Only include officially declared and taxed income received as wages or bonuses.
The calculator takes into account the given year’s valorization multiplier, the qualifying years multiplier, and the tiered degression, and based on these values, it calculates your expected monthly pension.
Important: The calculator does not account for the annual contribution cap prior to 2013, but the table shows the maximum annual gross income on which pension contributions had to be paid. Do not enter a higher annual gross amount than this for those years.
Always enter full-year earnings. The calculator continuously recalculates the average lifetime earnings, so if you have worked only a few years, it assumes that you will continue to earn at a similar level in the future. Therefore, it is important to enter all yearly data for a more accurate calculation.
The actual steps of pension calculations
The total years of service earned during your lifetime, rounded down to whole years (partial years are lost).
The net annual value of earnings received since January 1, 1988 (first pension contributions are deducted, then the income tax).
The net values must be multiplied each year by the annual valorization multiplier. This shows how much previous earnings are worth in today's terms. In practice, the key factor is whether the given year's income was below or above that year's net average wage (this determines its relative value).
The resulting amounts must be divided by the total qualying years (calculated in days). This amount must then be multiplied by 365 and divided by 12 to obtain the monthly net average lifetime earnings.
If the resulting amount exceeds 372,000 HUF per month, it must be degressed (first at 90%, then above 421,000 HUF at 80%).
Finally, the resulting amount must be multiplied by the multiplier corresponding to the qualifying years (after 20 years this is 53%, at 30 years 68%, at 40 years 80%, etc.). The maximum is 50 years, the minimum is 15 years (but the calculator can also calculate for the 10–15 year range).