Compensation for shortened working hours

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Category: social contribution

The Government has introduced support to compensate employers for some of their wage costs related to shortened working hours, the terms and conditions of which are set out below.

The conditions for support are as follows:

  • when applying for support, the employee and the employer undertake to agree on reduced working hours, individual development time beyond the reduced working hours for at least the duration of the support,
  • the employer employs the employee, who submits a joint application with the employer, in reduced working hours in order to prevent a reduction in the number of employees,
  • the employer presents in his application for support the economic circumstances justifying the employment on reduced working hours, their direct and close connection with the emergency, the measures taken and expected so far to overcome the economic difficulties,
  • the employer has exhausted the working hours available for rescheduling work until the application is submitted,
  • the company has been in operation for at least six months,
  • the employer does not receive support for job creation or job retention, or support for the employment of employees engaged in research and development in respect of the employee who submits a joint application with the applicant (employer),
  • the working time frame has expired or been closed,
  • the employee does not receive any other part-time allowance in respect of the same employment,
  • the employee has been employed by the employer at least from the date of the declaration of the emergency and his/her employment is not under termination.

Individual development time: the employee is exempted from the obligation to work to the extent of 30% of the time lost due to reduced working hours for the purpose of development related to the employee's job or the employer's activity, but the employee must still be at the disposal of the employer, e.g. develops job-related knowledge. For this time, the employer pays wages.

The support may be granted for a period of three months after submission of the application. The support is paid to the employee retrospectively on a monthly basis and is free of public charges.

The amount of the support is seventy percent of the part of the monthly net wage for thirty, forty or fifty percent lost working time, but it is a maximum of twice the mandatory minimum wage less taxes and contributions, that means a maximum of HUF 322,000.

The application for support is submitted electronically by the employer to the government office responsible for the employee's place of employment through its Gateway, during the period of the emergency or within one month after the end of the emergency.

 If we can help you in requesting support, Gabriella Takács, our HR Manager, is at your disposal at the email address Takacs.Gabriella@consultatiobp.hu.

 

Gubicza Krisztina Managing director

Takács Gabriella HR-Manager

Budapest, 5, May 2020