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On Tuesday, following information from the Hungarian Nation, we also reported that the government is changing its current model, as a result of which entrepreneurs interested in the hospitality and tourism industry will receive the state wage subsidy in advance after request it.
The change in model is expected to stabilize the market and, when tourism resumes, to open stores with retained and experienced workers. The great advantage of the new solution is that the state wage subsidy reaches companies in trouble more quickly and easily:
THE GOVERNMENT PAYS THE SALARY SUBSIDY IN AN AMOUNT UNTIL THE END OF FEBRUARY.
The decree, signed by Prime Minister Viktor Orbán and effective today at midnight, contains the following:
485/2020 on certain economic protection measures during the emergency. (XI. 10.) (hereinafter: R.) The following paragraph (4a) is added: (4a) If, for any reason, the employer no longer has or is not fully entitled to the allowance provided for in the decision, it must – as defined in the labor market program – you must immediately notify the county and capital city government office that you made the decision.
In Section 14 of R., the following paragraphs 5a and 5b are added: (5a) The employer until the end of the second month following the last day of the benefit period. – as defined in the labor market program – certify that you were entitled to the aid that was paid to you. If, by that date, the employer has not demonstrated or has only partially demonstrated your entitlement to the allowance, you must repay the portion of the allowance that you received without authorization.
5b If the employer complies with the reimbursement obligation established by the county and capital city government office before the 30th day after the establishment of the reimbursement obligation, no additional penalty related to the reimbursement obligation will be imposed.
§ 2 The following § 18 is added to R .: § 18 Wage subsidies already awarded by decision of the capital and county government offices under Chapter 3As defined in the labor market programit will be paid to the employer as an advance on support. § 3 In § 14 (5) of the R., the words “ex post” are replaced by the words “as a grant advance”.
Thus, a significant change with respect to the past will be that in the future state aid will not be granted after the month affected by the application, that is, with post-financing, but in order to alleviate the situation of applicants, companies will receive salary aid. at the beginning of the current month.
THIS MEANS THAT COMPANIES ARE AHEAD OF MONEY.
The accounting system is changed so that the payment of wages and employee withholding are tracked after the month in question. By doing so, the government will ensure that employment protection does not impose an undue burden on businesses that incur significant losses in addition to home delivery.
There is a great need for support.
Regarding regulation, it should be remembered that in the past there has been much criticism of the government for not spending enough resources to support the sector, which is almost paralyzed, or for not reaching the sector. According to data from last week, only 7 billion of the 27 billion HUF requested in support for job protection went to companies.
Gergely Gulyás, head of the Prime Minister’s Office, stated in last week’s government information that they accept the criticism of the hosts, which is why the government has decided to speed up the payment of sector wage subsidies.
A joint package of proposals may arrive
In our article below, we write in detail that this week professional organizations representing lodging and restaurant providers will attempt to come up with a common package of proposals to take on the government. The general opinion in this sector is that the end of the forced closure of the epidemic is currently unpredictable, so additional state aid is needed to avoid a wave of bankruptcies and keep the remaining 200,000 workers until opening. Meanwhile, the president of the Hungarian Chamber of Commerce and Industry also called for other state aid for the tourism sector, and the director general of the Hungarian Tourism Agency asked entrepreneurs for greater perseverance.
Cover image source: MTI Photo / Balázs Attila
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