A “new era” for guest workers in Hungary: New regulations and National Card

The employment of guest workers in Hungary has recently been subject to major changes. The government has introduced strict rules to ensure that the presence of guest workers is limited to the strict extent and duration required. In addition, a new type of residence permit will be made available for cross-border commuters.

The Hungarian government has drafted a new regulation to allow the employment of guest workers until major investments are operational. This means that guest workers can only work in the country with prior group approval and can stay for up to one year. It is important to stress that these workers are included in the national quota for guest workers. This ensures that only a limited number of guest workers are present in the country at any one time, which prevents excessive labour imports.

Cross-border commuters and the National Card

Another important element of the draft regulation is the extension of the National Card to cross-border commuters. This measure will mainly affect Ukrainian and Serbian citizens, making it easier for them to work in Hungary. The aim is to facilitate access to the Hungarian labour market for workers from neighbouring countries, provided they meet the legal requirements.

In addition, the quota for the employment of guest workers has been tightened. The government has reduced the maximum number of workers from third countries to 35,000 from 65,000. The number of guest workers will therefore remain under control, and they will only be granted work permits if the employer can prove that Hungarian labour is not available to fill the job.

As of January 2025, ten countries, including Vietnam, have been removed from the list of countries eligible to send workers, significantly reducing the number of workers coming from these countries. Currently, Georgia, Armenia and the Philippines are the countries with a quota in Hungary.

According to Világgazdaság, the share of workers from third countries in Hungary remains low compared to other countries in the region. While the share of guest workers in Hungary is only 2.8%, it is 4.3% in Slovakia, 6.8% in Poland and 16% in the Czech Republic. This shows that Hungary’s labour market is less reliant on foreign labour than its neighbouring countries.

The economic impact of foreign workers

These changes have two implications for businesses. On the one hand, they will have to rely more on Hungarian workers due to a reduction in foreign labour, which may increase the employment of the unemployed at home. On the other hand, the shortage of foreign workers may cause problems in some sectors, especially where turnover is high and it is difficult to find a sufficient number of Hungarian workers. According to HR experts, the changes will encourage companies to look for long-term solutions to labour shortages, such as training and retaining domestic workers.

However, there are some industries, such as manufacturing and construction, where a stable workforce is still needed. In these industries, guest workers may have an advantage as they tend to work for longer periods of at least two years, while there is a higher turnover of Hungarian workers.

A new model for guest workers

As Világgazdaság reported, the Hungarian government has based its new system on the Qatari guest worker scheme. The aim is to ensure that Hungary does not become a “guest worker country” and only employs as many guest workers as are strictly necessary.

According to the regulations, only countries with which the government has a special agreement can send guest workers to Hungary, and the government of the country concerned must also set up an office in Hungary to handle the workers’ paperwork and repatriation after the contract expires.

Based on current trends, no increase in the number of guest workers is expected in Hungary. Both the economic situation and the strict regulation contribute to an increasingly Hungarian labour market. The government’s objective is clear: to allow the presence of guest workers only to the extent and under the conditions that are necessary, while preserving the flexibility and stability of the Hungarian labour market.

Read also:

• Guest workers in danger? Hungarian companies plan to dismiss many employees in 2025
• 100 new factories in Hungary for guest workers?

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