Further AmCham Proposals Issued to Improve Job Retention Subsidy

  • April 28, 2020
On April 27, AmCham President Farkas Bársony and CEO Lippai-Nagy presented additional feedback from our members on the job retention subsidy scheme at the weekly action group meeting led by dr. László Palkovics, Minister for Innovation and Technology.

We highlighted issues regarding

  • the administration process,
  • the eligibility of certain knowledge workers,
  • the maximum amount of support,
  • tax relief for temporary workers,
  • the R&D support application

among others.

One of the main concern for our members was that if a company wants to receive the full subsidy for May, they must submit the application by April 30 which is a problem for businesses with hundreds of employees. However, the government clarified that the application can be submitted at any time, even in the middle of a month and it is possible to account for a partial month. The subsidy cannot be claimed for the period prior to the date of submission.

Secondly, the signed subsidy application must be submitted with the employee which is major issue for large employers. It would be more effective if the application and disbursement process was managed by the employer in its entirety.

In addition, the subsidy amount remains low for employees earning higher wages; therefore, we propose raising the monthly fee from HUF 75,000 to at least HUF 127,500.

The subsidy was expanded to temporary workers in the latest update, but companies do not receive tax breaks for them since they are employed by a temp agency.

Additional recommendations

For a lot of companies where work continuted despite the outbreak, it is a major concern that employees cannot take days off or go on vacation due to the increased workload and restrictions applied during the state of emergency. We propose moving half of the available days off to 2021 or giving employees the option to redeem their days in cash.

Furthermore, government decree 108/2020 says that special tax can be reduced by sponsorship of team sports. We urge the government to expand the tax break to support contracts between companies and medical institutions actively fighting against the pandemic (hospitals, etc.).

Since the beginning of the crisis, AmCham has been in contact with the government to examine the economic impact of the virus and find solutions to help businesses with the active support from our members. We would like to thank you for your commitment and input.