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SMEs can apply for capacity building funds

The program, with a budget of HUF 13.7 billion, could help 4,000 people get a job.

In order to increase the number of employees and expand their capacity, micro, small and medium-sized enterprises (SMEs) can apply for a grant of up to HUF 13.7 billion, Sándor Bodó, State Secretary for Employment Policy at the Ministry of Innovation and Technology, announced.

The funds can be applied for by SMEs that operate in the less developed regions of Hungary, outside of Budapest and Pest County, he said.

The support is available to companies that undertake to increase the number of employees at their existing or newly established site by at least three and at most 25, he explained. The new employees’ wage costs will be funded for eight months under the program, but the company must then undertake to keep said workers employed for an additional eight months. The subsidy covers a maximum gross monthly income of HUF 309,000 and the related social contribution tax, he added. Bodó also said that businesses can claim a maximum of HUF 4 million per employee.

The company can spend an amount equal to 30 percent of the wage cost on the acquisition of assets and intangible assets, the state secretary pointed out. He also mentioned that if the new worker employed through the application is a registered jobseeker, the flat rate will increase to 35 percent and, in some cases, to 40 percent.

The program could help 4,000 people get a job, Bodó said, adding that the government spends hundreds of billions of forints a year on various programs and benefits to support SMEs. He recalled that 4.7 million people work in Hungary today, and the unemployment rate has fallen below 4 percent.

After an assessment, 60 percent of the wage subsidy will be paid immediately, Zsuzsanna Budainé Kovács, Deputy Chairman of the Hungarian State Treasury, said. The winning applicant has 90 days to hire the new employees and can then get the rest of the wage subsidy awarded, she added, indicating that the applications submitted will be processed within a maximum of 60 days.

Those interested can find out more about the tender on the website of the Hungarian State Treasury or on the website munka.hu. Applications can be submitted until December 31 or until the budget is exhausted.

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