Training subsidies for job retention (preventive training)
- Name of the instrument - Local language
- Munkahelymegtartó képzés támogatása
- Name of the instrument - English translation
- Training subsidies for job retention (preventive training)
- Type of instrument
- Grant for companies
- Type of entry
- Single instrument
- Short description
Companies with employees whose regular employment cannot be ensured without training can apply for a State funded grant to cover the costs of training of these employees.
- Short description of the related instruments
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Key scheme
- Legal basis
Act IV of 1991 on the promotion of employment and unemployment benefits. Ministerial Decree 6/1996 (16 July) issued by the Minister of Labour on financial support promoting employment and on tackling employment crisis situations using the Labour Market Fund
- Objective(s) and target(s)
To support training for people whose continuing employment cannot be guaranteed without training; avoid wokers' dismissal.
"Terminate, manage and dissolve labour tensions and mitigate their negative consequences" (Act IV of 1991).
- Year of implementation
National Employment Office
- Eligible group(s)
Companies with employees whose regular employment cannot be ensured without training (for example where employment is anticipated to end in one year) and the employer reported it to the employee and the employment centre.
- Group(s) with preferential treatment
Companies that hire people younger than 25 years old (especially school leavers), people over 55 years old, long-term jobseekers, women on/returning from maternity leave, unskilled workers, mothers with three or more children returning to work
- Education and training eligible
sector specific and transferable; training programmes which aid finding or maintaining employment:
a) VET programmes (except for ISCED 5B advanced level VET) and foreign language training as part of these
b) general training preparing participants for entering VET
c) career orientation and job-search skills training
d) training preparing participants already having a vocational qualification for obtaining a state-recognised foreign language certificate
e) training awarding professional driving licenses and foreign language training
f) training preparing for entering higher education if it is (co)organised by a Roma local government or association
- Source of financing and collection mechanism
State (National Emloyment Fund)
- Financing formula and allocation mechanisms
Minimum/maximum amounts that company can receive, number of grants that may be allocated to company at the same time, duration and frequency of preventive training - not defined by law.
Training can take place during or outside working hours.
Companies employing specific/vulerable groups (see preferential treament) may receive a discount on the contribution payment.
Allocation: In the framework of EU-funded programmes, labour offices make advance payments to the companies which, in turn, pay training providers (afterwards, the labour offices receive their money from the EU-fund intermediaries). When there is no EU funding, labour offices pay directly to training providers.
- Eligible costs
Fees and other costs related to educatin and training (costs of materials, travel, accommodation, meal, formulation of training plan, personnel absence costs).
- Frequency of the use
Specific rules/conditions for reuse
- Volumes of funding
- Beneficiaries/take up
No data on benefiting companies is available.
In 2014, 10 391 adults were trained; 3 008 male, 7 383 female.
2013: 12 243 adults; 10 720 male, 1 523 female
2012: 10 727 adults; 9 822 male, 905 female; 1 377 aged 20-24, 3 603 aged 25-34, 5 728 aged 35-54, 19 aged 55-64.
- Organisation responsible for monitoring/evaluation
Labour centres are responsible for monitoring and evaluating the functioning of the instrument at local level, but it is the Ministry for National Economy that evaluates it at national level and may take corrective actions.
- Monitoring/evaluation reports available
Annual analysis of the effectiveness of the active labour market tools carried out by National Employment Service; published in Hungarian http://nfsz.munka.hu/engine.aspx?page=afsz_stat_fobb_aktiv_eszkozok
- Most relevant webpage - in English
- Most relevant webpage - local language
- Recent changes
A higher number of potential users expressed an interest in the preventive training instrument during the economic crisis.
Public funding is decreasing, and labour market training is being financed more and more through the European Social Fund.
Year Book 2012/2013. National Employment Service. http://en.munka.hu/engine.aspx?page=labour_market_yearbook
The Hungarian Labour Market 2014 http://www.econ.core.hu/english/publications/lmyb.html
Webpage of National Employment Service http://en.munka.hu/ and data received directly from the National Office for Vocational Training and Adult Education
Government of Hungary (2014): National Reform Programme 2014 of Hungary http://ec.europa.eu/europe2020/pdf/csr2014/nrp2014_hungary_en.pdf
Cedefop: Financing adult learning. http://www.cedefop.europa.eu/FinancingAdultLearning/DisplayInstrumentNa…