State support to salaries

If the wages of employees working in shorter time are supplemented by the state, workers will get better out of their revenues while companies can retain their employees.

„Kurzarbeit” – the Hungarian way

As supporting to salaries, 70 % of the salary difference shall be paid by the state for a period of 3 months for the salary part, the subsidy is; however, capped by the double the minimal wage per person.

The support might be paid to the employee based on the mutual claim of the employer and employee provided that the following conditions are met:

• the working time reduction may range between 15% to 75 % of the normal working hours on 3-month average;
• the basis of calculations is the base salary;
• the scheme applies to remote or home office work as well;
• the employer is obliged to maintain the jobs of the subsidized employees only;
• “personal training time” is only obligatory if the decrease of the working time exceeds 50%, the employer must bear its costs, but the training time may be shifted to the next two years following the state of emergency; below a 50% decrease, the personal training time may be voluntarily granted;
• the employee does not receive any other support or aid connecting to the same employment; further, the employment has started before proclaiming the emergency and it is not concerned with termination;
• the employer exists for at least 6 months;
• the employer has presented its economic circumstances;
• the employer is neither supported with benefits connected to saving or presenting new workplaces nor employs an employee in the R&D area where aid is provided.

For the utilization of the support it is essential to have the so-called ’harmonized employment relations’; further, the economic reasons of the reduced working time and their close and direct connections to the pandemic emergency shall be presented.

The claim shall be submitted by the prescribed form of the National Employment Service. The government office brings its decision within 8 working days where the conditions are deeply analyzed. There is no possibility to submit an appeal against the decision and there is no space for legal remedy.

Support of employees in the R&D industry

Personalized wage compensation due to the coronavirus situation is provided to employees performing R&D activities. The rules are in effect from April 15. The amount of monthly contribution may not exceed HUF 318.920 /employee. A claim should be submitted in order to utilize the support where the claimant undertakes to keep the average statistical number of employees and further employment of such employees. The legislation provides for further preconditions as well.

In case you haven't read our previous article in this regard yet, please visit this.

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