The government's job protection scheme costing the budget 300 billion forints (EUR 105m) in 2013 is expected to protect 1.5 million jobs and create several hundred thousand more, Economy Minister György Matolcsy said on Tuesday.

Matolcsy, briefing lawmakers, said the plan combined specific employment targets as well as tax breaks and support in sectors where the level of employment is much lower in Hungary than in the rest of the European Union.

Employers of unskilled workers, people over 55 years or without a job for over 6 months will receive tax breaks; the aim is to cut employee-related costs to 14 percent from 28.5 percent, he added.

Once the action plan is implemented, Hungary can set a target for full employment, Matolcsy said. The prime minister's announcement of new 5-5.5 million jobs by 2020 will produce full employment, Matolcsy said. All 495,000 registered jobless will get work in the market or in public works schemes over the next 2-5 years, he added.

(Ministry of Foreign Affairs)