Gov't decides on conditions for wage compensation subsidies

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The government has taken a decision on conditions for some HUF 21 billion in subsidies for wage compensation, state secretary for employment policy Sándor Czomba said at a press conference on Wednesday.

The earlier announced subsidies are intended to help employers fulfill a government mandate to raise the wages of low earners who would otherwise take home less because of recently introduced tax changes. The subsidies support a 5% increase in the wages of such earners.

In order to be eligible for the subsidies, employers must pay wage compensation to all workers affected, Czomba said. They must also maintain headcount at or above last year's levels, and they may not make more than one-fifth of full-time employees part-timers, he added.

Average gross wages of staff must not have exceeded HUF 215,000 per month in 2011, he said, citing another condition for eligibility.

The subsidies are expected to become available by the time wages for June are paid out, Czomba said. Legislation on the subsidies are expected to be approved by Parliament in March, he added.

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