On the 10th of April, 2020, the Government of Hungary as part of its long-awaited Economic Protection Action Plan (the “Plan”) introduced a subsidy scheme for the employment of research and development (R+D) employees by Government Decree 103/2020. Our Employment Law team summarizes the most important facts.
Employers can receive a government subsidy after researcher-developers (engineers, researchers, IT specialists) for a maximum of 3 months, which can be applied for from April 15 until one month after the end of the state of emergency. The subsidy covers all non-state-budgetary employers where research and development is carried out.
The employee must qualify as a researcher-developer as per the Act LXXVI. of 2014 on Innovation: a natural person who is engaged in the creation or development of new knowledge, intellectual property, a product, service, procedure, method or system or who is engaged in the management of the implementation of projects aimed at it.
The subsidy is for a period of three months and its amount may not exceed HUF 318,920 per month per person, ie a total of HUF 956,760 per person. Below the HUF 670,000 gross salary, the subsidy decreases proportionally. The amount thus awarded is paid to the employer, who must guarantee in return for the aid that the company will maintain its headcount level and that the employee will remain employed for at least 3 additional months for a salary/wage not lower than on the day the state of emergency was declared (March 11, 2020).
To understand if your business is eligible, the amount and duration of subsidy your employees are entitled to and other conditions, our Employment Law team is at your disposal.