Return to the Newsroom
Mailchimp - subscribe form sidebar

Action plan for the protection of the economy and wage subsidies in Hungary | News Flash

April 14, 2020
This article is also available in

In the framework of the control due to the coronavirus pandemic, the Hungarian government, which is taking advantage of the given extraordinary legislative opportunity, has established several detailed regulations that combined the aim to contribute in ensuring the competitiveness of the Hungarian economy and to preserve jobs. Please find detailed information below;

Contrary to the current provisions of the Labour Code, the typically four- and six- month working limits were uniformly raised to twenty-four months by the relevant legislation. The new provision provides more flexibility for the employees and also for the employers.

The government wants to help businesses by setting up rules for employment of employees with reduced working hours. Reduced working hours require an amendment to the employment contract: employee can now be employed 50-70% of the time compared to the previous working hours, for at least four hours a day. The related state support can be applied by both the employee and the employer in a form of a joint application, for a period of maximum three months. Relevant documents must be submitted to government offices, while the employer must have been in operation for at least six months, and the employee cannot be under termination.

We definitely recommend the involvement of an expert, because this support is not automatic: the changed circumstances and the reasons for the support must be justified – for as long as possible. The procedure is conducted electronically, with the government office deciding within eight days of submission. There is no remedy. In the case of a rejected application, it can be resubmitted once (obviously it is advisable to reconsider the new application and supplement it by additions).

There is no public charge for the grant. Temporary employment is not covered by the support and cannot be claimed by companies that are subject to bankruptcy, liquidation or winding-up proceedings.

Mailchimp - subscribe form sidebar