Budapest (MTI) – The government has asked Economy Minister Mihály Varga to examine whether it is possible to give employers the option to reward their employees partly in cash to replace the current benefit system criticised by the EU, government office chief János Lázár said on Thursday.
Speaking at his regular weekly press conference, Lázár said plans on the table are for changing the benefit system in a way that in the private sector of the annual cap of 450,000 forints, 100,000 forints would be awarded in cash and the rest would go on the recreational SZÉP card. In the public sector 100,000 forints would be paid out in cash and 100,000 on the SZÉP card, he said. Varga should examine whether such a modification would be possible, Lázár said.
Under a European Court of Justice ruling Hungary must eliminate its unified voucher system because it violates the principle of freedom of establishment and the freedom to provide services. Prime Minister Viktor Orbán earlier suggested the vouchers could be replaced with cash remuneration on which employers would also enjoy payroll tax preferences.