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EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure HU-2022-11/2400 – measures in Hungary

Employment subsidies for Ukrainian refugees

Ukrán állampolgársággal rendelkező személyek foglalkoztatásának támogatás

Country Hungary , applies nationwide
Time period Temporary, 10 March 2022 – 31 May 2022
Context War in Ukraine
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
Author Nóra Krokovay (KOPINT-Tárki) and Eurofound
Measure added 23 May 2022 (updated 14 June 2022)

Background information

Under government decrees 96/2022 and 172/2022, an employer who provides at least 20 hours per week to a Ukrainian or Ukrainian-Hungarian citizen who has fled to Hungary since 24 February 2022 can apply to the authorities for a subsidy for the costs of accommodation and commuting.Under govt decree 86/2022 refugees from Ukraine may be employed as fostered workers in Hungary

Content of measure

Companies employing Ukrainian or Hungarian-Ukrainian citizens fleeing the war in Ukraine after 24 February 2022 are eligible. The subsidy is 50% of the costs of accommodation (or 100% if living in a village on the government's special preferred localities list) and commuting costs, but no more than HUF 60,000 (€210) a month per employee and an additional HUF 12,000 (€42) per child living with the employee. The subsidy can be given for 12 months and it can be extended for another 12 months. The employer must provide the employee with accommodation and the means for commuting. Applications must be filed to the National Employment Office using their online form.

Use of measure

By May 2022, 444 requests for subsidies in connection with accommodation were filed for Ukrainian refugees employed in Hungary (however, not everyone requested accommodation). Employers like electronics maker Videoton, and supermarket chain Tesco are inviting refugees from Ukraine to work. A trade union official said that with the majority of refugees being women and often only suited to unskilled positions, it is difficult to find the right fit for employers and job-seekers.

Target groups

Workers Businesses Citizens
Migrants or refugees in employment
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
Public employment service
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

Measures were discussed at a dedicated meeting of the Permanent Consultation Forum of the Private Sector and the Government (VKF), a tripartite body of representatives of employers, employees and the government, in May 2022

Views and reactions

Employer organisation MGYOSZ welcomed the measures helping the situation of Ukrainian refugees in Hungary and started its own collection drive to raise money in cooperation with the Federation of Employers of Ukraine (FEU). The employer and trade union sides agreed at the tripartite VKF meeting that the measures were necessary; the employer side requested more support from the government for employment measures for refugees from Ukraine. Trade unions agreed that the measures should be extended, but warned against creating conflict between vulnerable labour groups of Hungarian origin and the refugee workers, said LIGA trade union leader Melinda Mészáros.

Sources

Citation

Eurofound (2022), Employment subsidies for Ukrainian refugees, measure HU-2022-11/2400 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2022-11_2400.html

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