Gov't Launches Support Scheme for SMEs in Underdeveloped Regions

Government

The government is launching a HUF 5 billion program to support capacity expansions and technology upgrades at SMEs in underdeveloped areas of the country, the state secretary for employment policy said on Tuesday, according to a report by state news wire MTI.

Sándor Czomba said the funding targeted SMEs in Northern Hungary, the Northern Great Plain, the Southern Great Plain, and the Southern Transdanubia regions of the country and was available for up to ten new hires per business.

Businesses may apply for wage support for up to gross HUF 400,000 a month per new hire in addition to social contributions. The wage support targets Hungarians who are out of work at present.

Winners may avail of the support for a period of six months, but must pledge to keep their new hires on payroll, without cutting their remuneration, for an additional four months.

SMEs may also apply for funding up to 30% of wage costs for the new hires to use for purchases of equipment and for online marketing and cloud-based business services, adapting their companies to the digital transition.

SMEs could win up to around HUF 2.5 mln per new hire in the scheme, Czomba said, adding that it could support the creation of some 2,000 jobs.

Czomba told public television channel M1 that the some 300,000 registered jobseekers and economically inactive Hungarians, the country's labor market "reserve", needed to be mobilized in the coming period.

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