In recent years, a non-refundable subsidy could be requested from the Ministry of Finance for certain specific corporate trainings. In practice, this form of support was relevant for businesses that were about to create significant number of jobs and therefore, required training in the development of workers' skills and competences.
At the beginning of 2020, the rules on training subsidy were abolished, however, from 22 October 2020 this form of support is available again. From multiple points of view, the new rules and revised conditions are more adapted to the current conditions and the expectations of companies.
Our article on the new regulation can be found on Adózóna website, and below we summarized the main information on the subsidy scheme.
Who can apply for training subsidy?
Regardless of the size of the entity, training subsidy can be requested by enterprises that have a registered office, branch or seat in Hungary and which implement an investment project or establish / expand a shared service center.
What kind of trainings are eligible for subsidy?
Subsidy can be requested for internal (within a company/group of companies) and external (third-party service provider) trainings which improve the employee's competitiveness, skills and competences (e.g. language training, IT training, conflict management training, entrance training for new employees).
What kind of costs are eligible for subsidy?
For the purposes of training subsidy, eligible costs include, for example, operating costs related to training projects, trainees and trainers (travel expenses, accommodation costs, material costs, depreciation costs of assets and equipment), personnel related costs of trainees and trainers (for the training period) and indirect general costs (rental fee, utility costs, administration costs).
What is the maximum amount of subsidy?
The training subsidy cannot exceed 50% of the eligible training cost and EUR 5,000 per trainee. Another condition is that the amount of subsidy cannot exceed EUR 2 million per training project.
What kind of conditions must be met to receive the subsidy?
The main conditions are as follows:
- The applicant has to submit a grant application to the Hungarian Investment Promotion Agency before starting the training and plant development – subsidy cannot be granted to ongoing projects.
- In the case of investment project, the total value of the investment must reach at least EUR 5 million.
- The duration of the training project should not exceed 24 months from the start of the first training to the completion of the last training.
- In the case of shared service center where the beneficiary of the training subsidy does not use other regional aid based on an individual government decision, the number of employees shall be increased by at least 25 people. For other projects, there is no need for increasing the number of employees.
- The number of employees (average statistical number of employees in the 12 months prior to the start of the project or total number of employees with newly created jobs) should be maintained for at least 18 months after the completion of the training project / investment project.
- Collateral of at least 120% of the subsidy amount must be provided.