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On August 31, the possibility for Hungarian companies to submit a wage subsidy for job protection was removed. The government said in early August that it did not see a reason to postpone the deadline, but the increase in the number of cases and the deterioration of the epidemiological situation could lead decision-makers to rethink the program. In particular,
in the region and in Germany, for example, policy makers continue to view this measure as an important tool and maintain it.
“Continuing with the program would only be useful because, in addition to putting certain sectors and related jobs at a disadvantage, the central budget also spends much more money on supporting the unemployed and reintegrating them into the labor market. It must be reconsidered that the previous wage subsidy program, or a more modern version of it, will be continued, as experience has shown that the Hungarian subsidy system was far from being as generous as our regional neighbors “- highlighted Lajos Bagdi, partner tax advisor to Niveus Consuting Group.
They love it abroad
In Austria The current “Kurzarbeit” program, which now expires in September, has been extended for another 6 months from October 1, 2020 to March 31, 2021. In our neighborhood, workers continue to receive 80/85/90% of your take-home pay as a 1-month re-employment allowance, thus ensuring that the employer continues to pay only the cost of work actually performed.
In romania The amended and expanded regulation “Kurzarbeit” was also announced in August. This means that if a company’s turnover has been reduced by at least 10 percent, it has the option of introducing a reduction in working time of up to 50 percent. In this case, 75% of the lost income of employees during part-time employment is assumed by the state. Furthermore, after working from home, companies can apply for an allowance of 2,500 lei (approximately 175,000 HUF) per employee to purchase the necessary IT equipment.
Czech Republic it just announced that it will launch a new job protection wage subsidy program expected in November as a continuation of the previous program that ended in August. According to preliminary information, the government would support between 50 and 70% of part-time work at home.
In Slovakia Not only will the program, which now expires in September, be continued, but it will explicitly become a form of permanent support and detailed rules are being developed,
Croatia he also expanded his previous program; currently until the end of this year. Depending on the number of employees in the company, companies must demonstrate that they want to benefit from the aid for a minimum number of employees (whose employment has been reduced by a maximum of 50%) and that their turnover has been reduced by at least 30%. Companies can receive 2,000 Croatian kunas (approximately HUF 80,000) per government employee.
An expert from the Niveus Consulting Group highlighted that the Kurzarbeit program turned out to be so effective in Germany that it was decided at the end of August to extend the current program until the end of 2021. “The German form of support is otherwise very generous, the state can generate up to 80% of wages. ” Lajos Bagdi added.
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