Employment scheme for research and development employees

Kornélia Mitrik

As part of the economy recovery plan easing the economic issues caused by the COVID-19 outbreak, the Hungarian Government has announced an economy protection plan, with a focus on maintaining research and development jobs. The original regulation was amended by Government Decree 141/2020. (IV. 21.). The subsidy is available from the 16th of April.

According to the modified regulation if an employer employs R&D employees, one subsidy application per corporate site may be submitted to the government office (defined by the geographical location of the employer’s headquarter/registered site) during the so-called emergency situation or within 1 month after the emergency situation ended.

The form is available at the following link: https://nfsz.munka.hu/Munkaadoknak/Lapok/ma_tamogatas.aspx

The application shall be evaluated by the government office within 8 working days and if the decision is positive, a contract will be concluded with the employer.

The employee

should be a research-developer according to the provision of Act LXXVI on Scientific Research, Development and Innovation;
already have a R&D status at the time of declaring the emergency situation;
should be currently not spending a period of notice;
and should have received any other employment-related incentive in respect of the same employment.

The employer

should have been operating for at least 6 months;
should present its economic circumstances, their direct and close connection with the emergency situation, the measures taken and expected so far to overcome the economic difficulties;
should comply with sound labor relations;
should have no ongoing liquidation proceedings against it;
should not be classified as a company in difficulty on 31 December 2019.

The subsidy may be used for a period of max. 3 months after the submission of the application, for max. HUF 318,920 per month per R&D employee, which will be paid monthly posteriorly. If the employee's monthly gross salary is less than HUF 670,000 on the date of the declaration of the emergency situation, the maximum subsidy amount may be applied according to the ratio of the employee's monthly gross salary and HUF 670,000.

An important provision is that no other job-creating, job-maintaining or reduced-time employment support can be claimed for the same employee in addition to the wage subsidy for R&D employees.

The scope of the regulation has been extended until the end of the emergency situation defined in Decree 40/2020 On the declaration of a state of emergency. (III. 11.), and the changes must be applied to the ongoing subsidies.