GYED 2025 – Amount, conditions, claiming and taxation
What is GYED
Childcare allowance (GYED) is a cash benefit that parents on social security can claim after the birth of a child. GYED is intended to provide financial support for parents with young children during the period when their work is interrupted or reduced to raise the child.
The amount of GYED is 70% of the parent's previous gross income, but cannot exceed the maximum amount of GYED 2025, which is HUF 407,120 gross per month.
Who is entitled to GYED
Eligibility for GYED is closely linked to the parent's social security history.
Conditions for GYED
The conditions to get GYED in 2025 are as follows:
- At least 365 days of insured legal status in the two years preceding the birth of the child (e.g. employment, student status or self-employment).
- The parent must be insured at the time of the child's birth (i.e. have an active legal status).
- The parent applying for GYED is raising the child in his or her own household.
Extra conditions for GYED
GYED extra is an additional option that allows work while receiving GYED. The conditions for GYED extra include:
- The parent may engage in lucrative employment from six months of age of the child onwards.
- The amount of the childcare allowance does not change when the parent starts working.
It is important to underline that the rules for working while receiving GYED allow parents to work full-time while receiving GYED, so that they do not have to choose between receiving the benefit and earning wage from employment.
Calculation of GYED
GYED is calculated on the basis of the parent's gross income in the previous calendar year, of which 70% is paid each month, up to the maximum amount of GYED in any given calendar year. The maximum amount of GYED in 2025 is HUF 407,120.
Childcare allowance: if the amount of the benefit cannot be calculated on an income of 180 or between 30 and 120 days, the childcare allowance is based on twice the minimum wage.
When does GYED eligibility start?
GYED can be claimed after the expiry of the CSED, i.e. usually from the date when the child's age reaches 169 days. Duration of benefit:
- For one child GYED eligibility lasts until the child is two years old.
- For twins, GYED is paid until the age of three.
Father’s GYED – eligibility starts when?
Fathers may also be entitled to GYED if they meet the eligibility criteria. The answer to the question When does father's GYED start? is: fathers can apply to get GYED right after expiry of CSED if they take on the responsibility of bringing up the child, and meets all eligibility criteria.
GYED application
GYED application can be made electronically via the website of the Hungarian State Treasury, using the Client Gate identification. The following documents are required:
- Extract of the birth certificate of the child
- Employer’s certificate of the employment status of the applicant
- Completed application form
Typically, GYED payments start within 30 days of the application.
Apply for extra GYED
There is no separate procedure for claiming extra GYED, but it is automatic once the parent return to work. The parent is obliged to inform his/her employer and the paying authority (State Treasury, MÁK) of the start of the employment.
Claiming extra GYED for the father
The procedure for claiming extra GYED for the father is the same as for the mother, but it is essential to provide the employer's declaration and proof that the child is being brought up in the same household.
Taxation of GYED
In 2025, the taxation of GYED will be subject to the following rules:
- GYED is considered as income and is therefore taxable.
- It is therefore taxable as income tax at a 15% rate.
- There is no need to deduct additional taxes (contribution to the pension fund or health care fund).
PIT part of GYED
The PIT part of GYED is a fixed 15% personal income tax, which is automatically deducted at the time of payment if no exemption applies.
GYED benefit for mothers under 30
The GYED benefit for mothers under 30 will continue in 2025. A woman who gives birth for the first time after January 1, 2023 while under 30 years of age can benefit from the exemption from income tax for the entire duration of the GYED.
Family tax allowance during GYED
The family tax allowance is available during GYED, provided that there is a tax base on which the allowance can be claimed. If the parent does not have taxable income (e.g. other earnings), he or she cannot take advantage of the benefit.
GYED tax credit
The GYED tax credit may be relevant mainly for young people under 25 and mothers under 30:
- Individuals under 25 can claim the personal income tax exemption.
- Under the GYED benefit for mothers under 30, mothers of children born after 2023 can continue to benefit from a personal income tax exemption during the GYED period.
- A négy vagy több gyermeket nevelő anyák kedvezménye alapján SZJA mentesség érvényesíthető.
- 2025. október 1-től a három vagy több gyermeket nevelő anyák kedvezménye alapján is lesz lehetőség SZJA mentesség érvényesítésére.
As from July 1, 2025, infant care allowance (CSED), childcare allowance (GYED) and adoption allowance will be fully exempt from personal income tax if paid after June 30. Childcare allowances are subject to a 10% pension contribution tax, but still qualify for the family contribution credit.
GYED deductions
The following are deducted from GYED in 2025:
- Only 15% PIT (tax) applies.
- No other social security contributions are deducted.
Self-employment while on GYED
Individuals are allowed to start self-employment while on GYED in 2025. Self-employment does not exclude entitlement to GYED, however, personal income tax and other tax rules may apply.
Self-employment while on GYED
Individuals are allowed to start self-employment while on GYED in 2025. Self-employment does not exclude entitlement to GYED, however, personal income tax and other tax rules may apply.
Second-job self-employment GYED
A self-employed person taking a second job may also be employed during GYED, provided the child is at least 6 months old. Earnings do not affect the amount of GYED, but taxation on self-employment is compulsory.
Unemployment benefit after GYED
Unemployment benefit after GYED (jobseeker's allowance) can be claimed if the parent cannot return to work after the end of GYED, and meets the eligibility criteria for jobseeker's allowance (e.g. a sufficient length of previous employment).
GYED pension contribution
GYED pension contribution is not deducted as no pension contribution is payable on GYED. As a result, the GYED period does not automatically count towards the pension base. An exception is made if the parent also earns pensionable income from other employment.
GYED during pregnancy
During GYED, a parent may be entitled to CSED (childcare allowance) in the event of a new pregnancy, provided that the necessary eligibility conditions are met. Claiming GYED for the second child is not automatic, but if the mother receives CSED after the birth of the second child, she may continue to receive GYED for the first child. Later, when the CSED expires, GYED can also be claimed for the second child, so that GYED for two children of different ages can be paid at the same time. However, in this case, attention should also be paid to the combined ceiling for GYED in 2025.
Grandparent’s GYED
Grandparent’s GYED allows the grandparent to take care of the child while receiving childcare allowance. An important condition is that the parents must be employed, consent to the grandparent getting GYED, and the child must not be attending a day nursery. In addition, the grandparent must not be employed during the period of GYED, except for domestic work in the household where the child is cared for. The administration required to apply for grandparent's GYED is similar to that for classical child benefit.
Rules for working while receiving GYED
The rules on working while receiving GYED have been relaxed from 2014: after the child reaches the age of six months, the parent receiving GYED can work without limitation, even full-time. This applies both to employment and to self-employment or second job. It is important to know that working while on child benefit is taxed under the rules on earned income, and that child benefit does not lose its tax-free status.
Changes are expected from January 1, 2026:
If the insured person's insurance status is terminated while the infant care allowance, adoption allowance or childcare allowance is being paid, the employer concerned with the terminated insurance status will be responsible for the continued payment of the benefit of the employer of the insured person concerned. If the insured person changes employer while the benefit is being paid, the new employer shall pay the benefit already provided.
GYED - unpaid leave
During the period of GYED, the employer is obliged to provide unpaid leave, which the employee can request until the child reaches the age of three. This leave provides one of the basic conditions for receiving GYED and allows for the continuation of the insured status if the parent does not wish to work until the child is 3 years old.
Termination during GYED
Termination of employment during GYED by the employer is only possible in exceptional cases, for example when the employer ceases to exist without legal successor. Otherwise, the parent is protected against termination during GYED. However, if the employee wishes to terminate the contract himself/herself, he/she can of course do so - in which case it is also advisable to take into account the tax and contribution implications of GYED.
If employment is terminated during GYED
If the employer ceases to exist or the employment ends for any other reason during the GYED period, entitlement to GYED does not automatically cease, but it will continue to be paid on a passive basis for as long as the entitlement period continues. However, this passive GYED does not extend the period of entitlement.
Termination during GYED by the employee
An employee can resign at any time during the GYED period, but this may affect his/her future entitlements, for example, leave accruing when he/she starts working after GYED. It is worth finding out in advance how to terminate a work contract during GYED, and what the consequences of resigning may be.
Termination with immediate effect during GYED
An employee may also terminate employment during GYED with immediate notice if the employer is in serious breach of its employment obligations. The same is true vice versa, but the employer can only do so under GYED protection in very justified cases.
If the employer ceases to exist during GYED
If the employer ceases to exist while GYED is being paid, the benefit does not cease immediately, but continues to be paid on a passive basis because of the termination of insurance. This may also mean that it becomes more difficult to start working after receiving GYED, for example.
Employment on a case-by case basis while on GYED
It is also possible to work on a case-by case basis after the child reaches the age of six months on top of GYED, but the income earned in this way is subject to tax and contribution rules. It is also recommended to pay attention to the weekly/monthly working hours and income limits.
Father's GYED - change of job
The procedure for claiming paternity GYED does not change if the father changes jobs, but it is important that the eligibility conditions are still met. This is particularly important in terms of the length of insurance and the uninterrupted employment status. It is still possible to claim extra GYED for the father if the conditions are met.
Sick pay in addition to GYED
While working while on GYED, the parent may also be entitled to sick pay if the parent falls ill, but sick pay does not go hand in hand with GYED. The parent must choose which of the two benefits to take during the period.
Claiming GYES after GYED
The application for GYES after GYED is not automatic; the parent must submit a separate application. GYES is paid until the child reaches the age of three, but the amount is lower than GYED. The application for GYES childcare after GYED child benefit is smooth if the parent pays attention to the deadlines.
Leave during GYED
Leave during GYED cannot be taken as leave does not accrue during the period of unpaid leave. However, the employee is entitled to take leave after GYED, which is prorated for the period of absence. This can be taken or requested to be taken when the employee starts work.
Graduate GYED
Graduate GYED gives parents who are studying or have recently graduated from higher education the opportunity to claim childcare allowance. The benefit is available to those who have been in full-time higher education during the two years preceding the birth of the child or who have had a child immediately after graduating. The amount of graduate GYED is also capped in 2025, and proving eligibility requires a separate administration:
- is 1/30th of the statutory minimum wage applicable on the starting date of entitlement in the case of a student in higher education at the bachelor's level, higher vocational education or higher vocational education and training, or in the case of a student in further vocational education and training,
- for students in a master's program, a single course, a course of study at a university or a doctorate, 70 % of the 1/30th part of the guaranteed minimum wage applicable on the starting date of entitlement.
After GYED: application for employment
After GYED, the application for employment is submitted to the employer in which the parent indicates his/her intention to return to work. Before returning, it is also advisable to agree on the release of accrued leave and the conditions of working time and job type. The employer is obliged to employ the employee after the end of the unpaid leave - if the original position is not available, it must provide a comparable job.
Leave after GYED
Leave after GYED is granted for any period during which the employee was on unpaid leave and receiving childcare allowance. A prorated portion of this leave may be taken or paid upon request. The employer cannot refuse to grant leave and it must normally start granting it immediately after the start of work.
GYED - Childcare allowance Frequently Asked Questions
What is the difference between GYED and GYED Extra?
GYED Extra is an extended option that allows a parent to work from the age of six months of the child while keeping GYED. It can also be claimed for more than one child at the same time, for example GYED for one child and CSED for another.
What is the maximum amount of GYED?
In 2025, the maximum monthly amount of GYED is HUF 407,120 gross. This amount may change annually as the minimum wage and the wage ceiling increase.
What percentage of the salary is GYED?
GYED is paid at 70% of the gross earnings in the period preceding entitlement, up to the maximum amount set by law.
GYED is paid after how many years of employment?
To be eligible for GYED, you must have at least 365 days of insurance during the two years preceding the birth. This includes employment, self-employment or even student status (in the case of graduate GYED).
Does GYED count towards my pension?
Yes, the period of GYED counts as service and is included in the personal pension by the pension contributions deducted. This is particularly important in the long term, as the period on which the benefit is based increases the amount of the pension.
GYED and the possibilities associated with it - whether in terms of work, leave or benefits - raise a number of questions. The rules can change from year to year, so it is always worth asking your employer or accountant for up-to-date information so that the family can make the best decision.