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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 Updated – measures in Hungary

Employment subsidies for Ukrainian refugees

Ukrán állampolgársággal rendelkező személyek foglalkoztatásának támogatás

Country Hungary , applies nationwide
Time period Temporary, 10 March 2022 – 25 November 2022
Context War in Ukraine
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
Author Nóra Krokovay (KOPINT-Tárki) and Eurofound
Measure added 23 May 2022 (updated 19 June 2023)

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 can apply for a subsidy for the costs associated with the employment of that person, including their accommodation and transportation. Under government decree 86/2022 refugees from Ukraine may be employed as fostered workers in Hungary

Content of measure

Companies employing Ukrainian or Hungarian-Ukrainian citizens that fled 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.

Updates

The following updates to this measure have been made after it came into effect.

12 May 2023

Hungary's "state of danger due to armed conflict in a neighbouring country" was put into effect on 24 February 2022 to last until 31 May 2022. The services provided for refugees from Ukraine are in effect until this state of danger is in effect. There have been the following extensions so far:

  • 25 May 2022 - 31 October 2022 (govt decree 180/2022)
  • 1 November 2022 - 11 May 2023 (govt decree 424/2022)
  • 12 May 2023 - 25 November 2023 (Act XI of 2023; govt decree 424/2022 modified)

Use of measure

By May 2022, 444 requests for subsidies were filed for Ukrainian refugees employed in Hungary. 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 jobseekers.

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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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.