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← Overview Database of Innovative Social Policies in Europe

Reform of the Employment Subsidies for Disabled Workers

Country of implementation
Hungary
General short description of the innovation
The reform consists in that employment subsidies are linked to the real and proven costs related to the employment of disabled workers. Parts are wage subsidies, reimbursement of costs, rehabilitation support for non-pro?t organisations. Companies need to be accredited. /
Target group
Disabled
Policy Field
  • wage
Type of Policy
  • public
Duration of the policy
2005
Scope of innovation
  • Scope: structural
  • Spatial coverage: national
General description of (intended) objectives and strategies
The system of incentives and employment subsidies for disabled workers needed to be reformed for budgetary reasons, professional ones and reasons related to Hungary?s EU membership. The system became distorted, unsustainable in terms of funding, and did not comply with the competition and state aid rules of the EU. The new regulations came out in the framework of the ?100 Steps? Programme. The new rules created a more transparent system that also conforms to the EU legislation. / The rules of vocational rehabilitation were laid down in the government regulation on the accreditation of employers. The accreditation is an administrative procedure that can be initiated by the employer to assess the rehabilitation activities. At the end of the process the employer receives a certi?cate that gives entitlement to state subsidies. / Together with the accreditation, new rules were introduced for employment subsidies as well. The essence of the reform is that employment subsidies are linked to the real and proven costs related to the employment of disabled workers. / The new subsidy system has three components. These are: / ? the wage subsidy, intended to compensate for the lower productivity of disabled workers; / ? the reimbursement of costs that cover certain expenditures related to the employment of disabled workers; / ? the rehabilitation support for non-pro?t organisations that employ more severely disabled people who do not have a realistic chance of ?nding work on the open labour market. In this case, nearly all costs related to the employment of these workers can be reimbursed. / / As a result a more predictable and transparent system has been created to promote the employment of people who face disadvantages on the labour market because of their physical or mental impairments. / / http://econ.core.hu/file/download/HLM2005/TheHungarianLabourMarket_2006_onefile.pdf, p220-222 / /
Nature of the innovation-short-term perspective
A more predictable and transparent system has been created to promote the employment of disabled people
Nature of the innovation-long-term perspective
Promote the employment of disabled people
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • wages (wage subsidies, reimbursement of costs, rehabilitation support related to employment of disabled people)
Intended target group
Disabled people
Employers-private institutional actors
those accredited
Actors involved in policy-making/implementation and/or evaluation
  • beneficiaries/users (disabled people)
  • employers (organised or individual) (accredited employers)
Intended output
  • wages (wage subsidies, reimbursement of costs, rehabilitation support related to employment of disabled people)
Did the innovation have any outcome related to job quantity?
promote employment of disabled people
Clarification of outcomes in terms of impacting resilience and labour market inclusion
A more predictable and transparent system has been created to promote the employment of people who face disadvantages on the labour market because of their physical or mental impairments.
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