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Expanding the Start Programme

Country of implementation
Hungary
General short description of the innovation
In the framework of the Start Plus programme for people returning to work after child care the statutory contributions payable by the employer are partly covered by the Labour Market Fund. The Start Extra Programme aims to provide assistance to return to work for people in long term unemployment who face di?culties in the labour market because of their age or because they live in deprived areas. In their case the Labour Market Fund fully covers the employer?s contributions in the ?rst year and partly in the second year.
Target group
Total Population
Policy Field
  • general fiscal
Type of Policy
  • public
Duration of the policy
2007
Scope of innovation
  • Scope: temporary
  • Spatial coverage: national
General description of (intended) objectives and strategies
Based on the positive experiences of the Start Programme, with the support of the European Social Fund the Programme is expanded from 2007 with the aim of: / ? helping disadvantaged persons to enter or re-enter the labour market, / ? increasing employment in the target group, / ? encouraging employers to recruit disadvantaged workers, / ? creating incentives for employers to follow employment regulations and employ workers lawfully. / / In the Start Plus Programme19 the following target groups are entitled to a reduction on the contributions payable by employers: / ? persons who wish to return to work within one year of obtaining child care bene?ts or carer?s allowance, / ? persons receiving child care allowance taking up work after the 1st birthday of the child (provided they are not employed), / ? long-term jobseekers who have been registered with the PES for 12 of the previous 16 months (or six of the previous eight months in the case of per-sons under 25). / Employers hiring workers from any of these categories are entitled to the same discounts as employers of young entrants with the Start Card. Thus, they are exempt from the ?xed-sum health care contribution (1,950 Forints/month), and the rate of their contribution on the gross wage they have to pay is 15 per cent in the ?rst year and 25 per cent in the second year instead of the statutory 32 per cent payable by employers. / / Long-term job seekers can apply for a Start Extra Card if: / ? they are aged 50 years or over, or / ? regardless of their age, they have low educational attainment (lower sec-ondary). / Employers hiring workers from any of these categories are exempt from all public contributions in the ?rst year and in the second year they have to pay only 15 per cent of the gross wage of the worker. / http://econ.core.hu/file/download/HLM2005/TheHungarianLabourMarket_2007_onefile.pdf, p142 / http://econ.core.hu/file/download/HLM2005/TheHungarianLabourMarket_2006_onefile.pdf, p222-223 / / http://econ.core.hu/file/download/HLM2005/TheHungarianLabourMarket_2008_onefile.pdf, 162 /
Nature of the innovation-short-term perspective
helping disadvantaged persons to enter or re-enter the labour market by encouraging employers to employ them
Nature of the innovation-long-term perspective
increasing employment
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • subsidies/tax-credits (reduction of social contribution)
Intended target group
people returning to work after child care or long-term unemployed
Working age population
  • care responsibilities (care for children [0-16/16+], for elderly or other family members) (people returning to work after child care)
  • employment situation (long-term unemployed)
Employers-private institutional actors
those employing target group
Actors involved in policy-making/implementation and/or evaluation
  • agency or national social insurance body (Labour Market Fund)
  • beneficiaries/users (people returning to work after child care or long-term unemployed )
  • employers (organised or individual) (of people returning to work after child care or long-term unemployed )
  • supra/extra national organisations (European Social Fund)
Clarification of the role of various actors
Programme with the support of the European Social Fund. The remaining part after employers? contribution reduction is covered by the Labour Market Fund.
Intended output
  • subsidies/tax-credits (reduction of social contribution)
Did the innovation have any outcome related to job quantity?
lowerpromote employment of the target group
Clarification of outcomes in terms of impacting resilience and labour market inclusion
The measure aims at to make the hiring of the target group more attractive for employers through a reduction of social contributions. / /
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