World News from Hungary

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Disability pensioners could have their benefits repealed

(BBJ, 04.07.11) Following the government's decision to cut social benefits and guide people back to work force, the authorities will commence a nation-wide review of disability pensioners within the next few weeks.

Of Hungary’s 750,000 disabled pensioners around 220,000 can expect that their eligibility will be checked by the authorities, the right-leaning daily Magyar Nemzet reported on Monday. The government will only check the eligibility of disability pensioners who are more than five years away from the retirement age, Gábor Posfai, director of the National Office of Rehabilitation and Social Services, told the paper.

Disability pensioners in groups I or II (those who suffered a 79% health drop) are not going to be re-evaluated. However, they only constitute 13,340 and 96,716 people respectively.

Group III, those who suffered a 50-79% health drop and cannot be rehabilitated, and are over five years away from retirement can expect a re-evaluation call in the near future.

Calculating the number of disability pensioners and retirees receiving benefits, there could be around 528,000 people who the government can potentially steer back to the workforce. Out of this number around 150,000 new workers could be added to the workforce by 2013, according to the Ministry for National Economy

Source: http://www.bbj.hu/

New "disability tax" seen disabling Hungarian market for temporary workers

(31.01.11) Temporary employment businesses in Hungary are expected to lay off a large number of employees in 2011 as they face higher costs due to changes in regulations regarding the employment of disabled workers, hvg.hu reports.

Companies in Hungary which employ more than 20 people where the percentage of disabled employees does not reach 5% have to pay a rehabilitation contribution. (The literal translation of the relevant Hungarian term in this case - megváltozott munkaképességű - is not "disabled" but "someone with changed working ability")

The amount of the rehabilitation contribution is Ft 964,500 per year per the number of employees missing from the compulsory employee number. From January 1, 2011, temporary employment businesses are also required to pay this contribution.

Rajmund Dénes, spokesman for the newly-formed Association of Hungarian Temporary Employment Businesses (Magyar Munkaerő Kölcsönzők Szövetsége), said the new regulation ruined the stability of the market which managed to return to its 2008 level last year.

Currently, the number of less able workers in the market who wish to work is lower than the number required by law as the minimum number of less able employees, Dénes added. He thinks layoffs can be expected in the nearly 100,000-member temporary employment sector, as neither lessors nor lessees are able to provide funds for the extra expenses in the current economic situation.

Source: http://www.realdeal.hu/