GYED 2026 – Amount, conditions, claiming and taxation
What is GYED
The Child Care Allowance (GYED) is a financial benefit available to parents who have an active social security status following the birth of their child. It represents a key form of support for families raising young children while also having income from employment. GYED is a monetary allowance that can be claimed after the end of CSED (infant care allowance), from the 169th day, and is provided until the child reaches the age of two (or up to the age of three in the case of twins).
The period during which GYED is received is counted as contributory service time for pension purposes.
GYED may be requested retroactively for up to six months from the date the application is submitted.
For the purpose of GYED, a “parent” may be a biological parent, adoptive parent, spouse or partner living with the parent, guardian, or a prospective adoptive parent.
Unpaid leave
During the period of GYED, the employer is required to grant unpaid leave until the child reaches the age of three. The employee must submit a formal request for this leave using the appropriate form. This unpaid leave is one of the key conditions for receiving GYED and enables the maintenance of the employee’s social security status if they choose not to work until the child’s third birthday.
Returning to work
After the GYED period ends, the employee must submit a formal request to the employer expressing their intention to return to work. Before returning, it is advisable to clarify the rules for using any accumulated annual leave, as well as the conditions relating to working hours and the job role. Annual leave accrues during the period of CSED and during the first six months of GYED.
Once unpaid leave has ended, the employer is obliged to reinstate the employee. If the original position is no longer available, the employer must offer a similar role that matches the employee’s qualifications.
Cases of Employment Termination During GYED
- Employer‑initiated termination
Termination by the employer during GYED is only permitted in exceptional circumstances, such as the employer being dissolved without a legal successor. In all other cases, the employee is protected from dismissal for the duration of GYED.
- Dissolution of the employer
If the employer ceases to exist during the GYED period, the entitlement to GYED does not automatically end. Instead, the allowance continues to be paid by the State Treasury under so‑called “passive entitlement” for the remainder of the eligibility period. However, passive GYED does not extend the overall entitlement period.
- Employee‑initiated termination
The employee may terminate the employment relationship at any time while on GYED; however, this may affect later entitlements, such as the annual leave that accrues upon returning to work after GYED. It is advisable to seek guidance in advance on how to resign during GYED and to understand the potential consequences of doing so.
- Immediate termination
The employee may also terminate the employment relationship with immediate effect during GYED if the employer commits a serious breach of obligations arising from the employment relationship. The reverse is also theoretically possible; however, due to the protection associated with GYED, the employer may only apply immediate termination in very well‑justified, exceptional cases.
Eligibility Criteria for GYED
To qualify for GYED:
- the parent must have at least 365 days of insured status (e.g., employment, insured student status, self‑employment) within the two years preceding the child’s birth;
- up to 180 days of student status may be counted towards the required insurance period;
- the parent must have active insurance coverage at the time of the child’s birth;
- the parent claiming GYED must be raising the child in their own household.
Application Process
GYED can be requested electronically through the website of the Hungarian State Treasury using the Client Gateway (Ügyfélkapu).
The following documents are required:
- the child’s birth certificate
- an employer’s certificate confirming the insurance relationship
- a completed application form: Application for Child Care Allowance or Application for Infant Care Allowance and Child Care Allowance
Payment of GYED by the State Treasury generally begins within 30 days after the application has been processed.
- Alternatively, the application may be submitted directly to the employer’s designated payment office, if one exists. In such cases, the payment office determines and disburses the benefit, and no separate proof of insurance status is required.
Cases Where GYED Is Not Payable
GYED is not granted:
- if the child attends a nursery institution (state, workplace, family‑based, etc.), unless the parent claiming GYED is engaged in gainful employment or enrolled in full‑time studies;
- if the child has been removed from the family;
- if the eligible parent is held in detention.
GYED Extra
In 2026, employment alongside GYED remains permitted: from the child’s six‑month birthday onward, the parent may work without limitation, even full‑time, without any reduction to the amount of GYED.
No separate procedure is required; eligibility is automatic once the parent returns to work. However, the parent must inform both the employer and the Hungarian State Treasury (MÁK) about the start of gainful employment.
Income earned from employment during the period of GYED is taxed according to the rules applicable to employment income; the tax‑exempt status of GYED itself does not change. Electronic application via the Client Gateway (Ügyfélkapu) remains available. The allowance continues to be paid by the State Treasury to the parent’s bank account unless the employer is a designated payment office.
Diplomás GYED (Student GYED)
“Diplomás GYED” provides an opportunity for higher‑education students or recent graduates to receive child care allowance.
The benefit may be granted to individuals who:
- are not eligible under the general rules;
- pursued full‑time higher education during the two years preceding the child’s birth;
- have a child born within one year of completing their degree;
- are raising the child in their own household;
- are Hungarian citizens or citizens of another EEA member state;
- have a registered residence in Hungary at the time of the child’s birth.
The amount of student GYED in 2026 is also subject to a maximum cap, and eligibility requires additional documentation, including:
- the application form titled “Application for Student Child Care Allowance”
- the child’s birth certificate
- a certificate of active student status for the purpose of applying for GYED
- a copy of the address card
- if the biological father is applying due to the mother’s death, a copy of the death certificate must also be attached
Amount of Student GYED in 2026
- The maximum student (bachelor‑level) GYED: 70% of the minimum wage → 322,800 HUF × 70% = 225,960 HUF
- The maximum student GYED for master’s or doctoral studies: 70% of the guaranteed minimum wage → 373,200 HUF × 70% = 261,240 HUF
Father’s Student GYED (APA diplomás GYED)
The biological father is eligible for student GYED if the mother meets all the criteria for “diplomás GYED” and either the mother passes away or does not meet the mandatory eligibility requirements.
Father’s GYED (APA GYED)
Fathers may also qualify for GYED provided they meet the general eligibility conditions.
The process for a father applying for GYED Extra is the same as the procedure used in the mother's application. However, the employer’s declaration and proof that the child is being raised in the same household are especially important. In addition, the mother must provide a written statement relinquishing the benefit in favour of the father.
In the case of a job change
Changing employers does not alter the procedural steps for a father applying for GYED. However, it remains essential that all eligibility conditions continue to be met, particularly the required insurance period and the uninterrupted nature of the employment relationship. GYED Extra can also be requested in this case, provided the conditions are fulfilled, by submitting the form titled “Application for the continued payment of infant care allowance, child care allowance or adoptive parent allowance” along with the original decision granting GYED.
Grandparent GYED (Nagyszülői GYED)
Grandparent GYED allows a grandparent to care for the child while receiving the child care allowance.
The administrative steps required are similar to those for a standard GYED application.
Key conditions include:
- the parent must be raising the child in their own household, and the grandparent may supervise the child only during the day;
- the applicant must be a biological or adoptive grandparent;
- the grandparent must have at least 365 days of insured status within the two years preceding the child’s birth;
- the parents must be engaged in gainful employment;
- the parents must consent to the grandparent receiving the benefit;
- the child must not attend nursery school;
- no GYES may be claimed for the same child.
Additionally, the grandparent may not engage in gainful employment during the GYED period, except for work performed within their own household.
Foster Parent GYED (Nevelőszülői GYED)
A foster parent is eligible for the allowance if, during the period of their employment as a foster parent, they have at least 365 days of insured status within the two years prior to the placement of the child, and if the child is being raised in their own household. Foster parents may not engage in gainful employment while receiving the allowance, and if caring for multiple children, they may only receive GYED for one child.
Calculation of GYED
GYED is calculated based on the parent’s gross income from the previous calendar year. The monthly payment equals 70% of this income, up to the statutory maximum. The maximum amount of GYED in 2026 is 451,920 HUF.
- As a general rule, the benefit is determined based on the income earned within the 180 days preceding the third month before eligibility, provided this period was not interrupted by more than 30 days.
- If the applicant does not have 180 days of income, the calculation may be based on income earned over 120 days, but only if they have at least 180 days of continuous insurance status.
- If the applicant does not have either 180 or 120 days of income but does have 180 days of insurance status, the allowance is based on the actual income or the contractual salary.
- If none of these conditions are met, the basis for the allowance is one‑thirtieth of twice the statutory minimum wage in effect on the eligibility start date, unless the applicant’s actual income is lower than twice the minimum wage.
A new rule allows applicants to request in writing that income from a previous employment relationship also be taken into account when determining the daily GYED amount, which may result in a more favourable calculation.
Change Effective from 1 January 2026
If the insured person’s employment relationship terminates while they are receiving infant care allowance (CSED), adoptive parent allowance, or child care allowance (GYED), the competent health insurance authority at the location of the former employer’s registered seat becomes responsible for continuing the payment. If the insured changes employers during the payment period, the authority associated with the new employer will continue to pay the benefit that has already been granted.
Pregnancy During GYED
If a parent becomes pregnant while receiving GYED, they may be eligible for CSED (infant care allowance), provided the necessary conditions are met. GYED for the second child is not granted automatically, but if the mother receives CSED after the birth of the second child, GYED for the first child may continue to be paid simultaneously. Later, once CSED for the second child ends, GYED may be claimed for the newborn as well. As a result, it is possible for the parent to receive GYED for two children of different ages at the same time.
If the parent gives birth to another child within one year after their previous GYED or GYES has ended, the benefit amount must be compared with the CSED amount determined for the previous child. The more favourable amount must then be applied when granting GYED for the new child. This rule applies only if the applicant remains insured under the same employer.
GYED in the Event of a Child’s Death
If the child passes away during the eligibility period, the allowance is discontinued either from the following month or from the 16th day after the child’s death.
In the case of twins, if one child dies before reaching the age of two, GYED may continue to be paid for the surviving child up to their second birthday. If the child dies after the age of two, GYED for the sibling stops from the following month or from the 16th day after the date of death.
Taxation of GYED
In 2026, GYED remains fully exempt from personal income tax. Only a 10% pension contribution is payable, from which the family contribution allowance may still be applied.
As GYED is not subject to income tax, personal income tax allowances (for individuals under 25, mothers under 30, or mothers of multiple children) cannot be applied to the benefit.
No other health insurance or social contribution taxes apply to GYED.
Unemployment Benefit After GYED
A parent may apply for unemployment benefit after GYED (álláskeresési járadék) if they are unable to return to their workplace once GYED ends and meet the eligibility criteria for unemployment support, such as having an adequate length of previous employment.
Sick Pay While Receiving GYED
If the parent works while receiving GYED, they may also become eligible for sick pay. In such cases, both allowances can be received simultaneously, provided the conditions for sick pay are met.
GYES After GYED
GYES does not begin automatically once GYED ends. The parent must submit a separate application. GYES is available until the child turns three (or, in the case of twins, until the school‑entry year). The amount of GYES is lower than that of GYED. The transition from GYED to GYES is generally straightforward if deadlines are observed.
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.