Wage support payouts reach HUF 50 bln

Government

Photo by Liptak Robert / Shutterstock.com

Hungary's government has paid more than HUF 50 bln in wage support to companies in the tourism and catering sectors whose businesses have been hit hard by pandemic restrictions, state secretary for employment policy Sándor Bodó told news agency MTI on Wednesday.

The support has helped preserve 117,000 workplaces, he said. 

The government offered to cover half of gross wages of businesses that have been hit the hardest by the pandemic as it tightened restrictions and introduced a curfew in November. It also exempted those businesses from payroll tax, effectively subsidising two-thirds of payroll costs.

Bodó said 44% of the subsidies have gone to small businesses, 31% to microbusinesses, 19% to mid-sized enterprises, and 6% to big companies. Close to 60% of the support has gone to catering companies, he added.

The largest number of applications have come from Budapest and Pest County, and from Győr-Moson-Sopron County and Veszprém County in the northwest of the country.

Bodó noted that the wage support is being extended to further sectors impacted by a two-week shutdown of non-essential businesses in March. That wider eligibility is expected to preserve another 100,000 workplaces, he added.

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.