Published: December 19 2023
The Hungarian government has announced a new job scheme aimed at connecting experienced and young workers in Budapest. The scheme offers subsidies to companies that employ young people to replace retiring employees and to pay a wage supplement to those retiring employees who are willing to train the incoming staff.
Subsidies for Companies
Under the scheme, companies that hire young people to replace retiring staff will be eligible for a subsidy to pay a wage supplement to the outgoing employees. Trainers may receive an additional monthly payment of HUF 150,000 for a year, while the companies will benefit from a subsidy of HUF 244,500, or 75 percent of the minimum wage, to be used towards the salary of their young staff.
Retiring Employees Sharing Their Experience
Retiring employees who participate in the scheme will have the opportunity to stay on and share their experiences with younger peers. This allows for the transfer of knowledge and expertise from experienced employees to young workers, ensuring a smooth transition within the workforce.
Financial Support from the Government
The job scheme has a budget of HUF 2.6 billion (EUR 6.8m) and is set to start in January. The subsidies provided by the government aim to incentivize companies to participate in the program and promote the employment of young people in Budapest.
Benefits for Companies and Employees
Through this scheme, companies can benefit from financial support to train incoming staff while retaining the expertise of retiring employees. Young workers have the opportunity to learn from experienced professionals, gaining valuable skills and knowledge for their careers. Overall, the job scheme aims to strengthen the workforce in Budapest and encourage intergenerational collaboration.
Questions & Answers
What is the new job scheme launching in Budapest? The new job scheme in Budapest allows retiring employees to stay on and share their experiences with younger peers.
When does the job scheme start? The job scheme is set to start in January.
How much funding does the job scheme have? The job scheme has HUF 2.6 billion (EUR 6.8m) at its disposal.
What is the purpose of the subsidy offered to companies? The subsidy is offered to companies aiming to employ young people to replace retired staff. It is provided to pay a wage supplement to outgoing employees who are willing to train the incoming staff.
How much can trainers receive as an extra each month? Trainers may receive an extra HUF 150,000 each month for a year.
What is the subsidy amount for companies hiring young staff? Companies will benefit from a subsidy of HUF 244,500, which is 75 percent of the minimum wage. This subsidy will go towards the salary of their young staff.