CLV Partners


Wage Aid Provided For Reduced Working Hours Changed

On 29 April 2020, beneficial changes enter into effect in the aid provided for reduced working time employment.
The wage subsidy may be requested if the reduced working time reaches at least 25% and at most 85% of the previous working time, and no longer has to reach 4 hours a day.

The amount of the maximum wage subsidy depends partly on the lost working time and partly on twice the net minimum wage, therefore the maximum wage subsidy available increased to HUF 112,350 according to the decree, contrary to statements made in the media, according to which the maximum amount remains unchanged.

Further good news is that there will be less administration, an agreement on the incomprehensible individual development time is only mandatory if the reduced working hours exceed half of the previous working hours, and wage subsidies may now be granted for home office work, remote work, temporary agency work and during the working time frame.

Headcount maintenance and not ordering extraordinary working hours (overtime) will only apply to employees receiving the wage subsidy.

Unfortunately, the most uncertain circumstance has not been removed from the requirements, as employers still have to credibly prove the undefined ‘interest of national economy’ to retain employees.