Economy & PolicyLabor & Education

More dynamic support for disadvantaged employees

Hungary is paying increased attention to disadvantaged workers in the labor market.

Sándor Bodó, State Secretary for Employment Policy at the Ministry of Innovation and Technology, said the new provisions provide an opportunity for the state to take over half of employees’ salaries for three months to avoid collective redundancies.

Under the laws and related regulations, starting in March 2021, workers who have not been employed for six months or are between the ages of 15 and 24, or over 50, will be supported by labor market services in addition to available benefits. A personalized individual action plan will be created that will take into account the individual’s abilities and competencies as well as their goals.

Workers who have not been employed for 12 or 24 months can also receive a six-month wage supplement if they get employed. In addition, they can receive an amount equal to 30 percent of the minimum wage, currently more than HUF 50,000 a month. The employer also receives an allowance if he employs such a worker. In that case, the government will reimburse half of the employee’s salary for the first four months of employment.

Employers can also get support for up to half of the employees’ wages for three months to avoid mass unemployment. The amount per capita may not exceed 1.5 times the mandatory minimum wage per month. Among other things, the supported employer must undertake to maintain its staff at the time of the application. Furthermore, employment contracts can not be terminated by mutual agreement or within three months of the end of the support period either. The administrative burden of grants will also be further reduced, with only a one-page application that needs to be completed.

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