Draconian measures for guest workers to be implemented in Hungary from 1 January
Even though multiple officials of the Orbán cabinet have acknowledged the importance of guest workers in Hungary, the Hungarian government seems determined to stop the inflow of third-country workers from 2025. The first leaked news was about cutting the number of issuable work permits to non-EU nationals to almost zero. Following the first shock and the start of lobbying from enterprise owners, the original initiative softened. However, the changes are still considerable.
Anti-migration government accepts guest workers in large numbers
Starting in 2025, coming to Hungary to work as a non-EU citizen will not be easy. The number of such workers exceeded 80 thousand in Hungary, a country where the government campaigned and won three consecutive landslide victories with its anti-migration policies in the last decade. The original slogan was stopping migration and preventing migrants from taking the Hungarian people’s work.
However, many things have changed in the last few years due to the labour shortage Hungary’s market players face due to low salaries. Talented and hard-working Hungarians leave to earn more in Western Europe. However, the remaining workforce is not trained enough or capable of using the latest technologies in the country’s emerging manufacturing sector.
Therefore, investors building plants and factories in Hungary due to the low corporate taxes were unable to hire enough workforce, so they depended on bringing foreign employees, mostly from Asia. The result is that, for example, Indian and Filipino workers dominate Hungary’s dairy sector.
The Hungarian government decided to introduce draconic rules
Following criticism from Fidesz grassroots and amid a deepening economic crisis, the Hungarian government decided to cut back the number of available work permits for non-EU residents drastically. First, news emerged about granting such permits only to Georgian nationals since Georgia is the only country Hungary signed a readmission agreement with.
On Tuesday, the Ministry of National Economy wrote about a maximum of 35,000 work permits entitling the owner to reside in Hungary. The Orbán cabinet said such a modification is needed for the protection of the workplaces and Hungarian families. It is important to highlight that the new rules will not change the working conditions of those who are already here and working with a permit.
According to Tőzsdefórum, such work permits will only be available for non-EU residents if the vacant position cannot be filled by the Hungarian workforce. The basis of the 35,000 is the number of vacant positions in 2024 Q4, which was above 71 thousand.
Tax benefits narrowing for 3rd-country guest workers
The Hungarian prime minister expressed before that his government does not want Hungary to become a “migrant country”.
We wrote earlier that the government would decrease the tax benefits guest workers are eligible for. As a result, 3rd-country workers will earn less after 2025. The only exceptions are guest workers coming from neighbouring countries like Ukraine and Serbia.
On the other hand, from January, Vietnamese, Indian, Indonesian, Kyrgyz, Uzbek, Venezuelan, Montenegrin, Filipino, etc. workers may earn less. They will no longer be eligible for family tax allowance, the allowance for young couples in first marriage, and the tax benefits for employees under 25.
Read also:
- Tax benefits change, 3rd-country guest workers will earn less in 2025 in Hungary!
- HERE is how the enterprises reacted to the cutback
- Shocking proposal: Hungary plans ban on non-EU guest workers starting 1 January
Featured image: depositphotos.com
Under EU law, it is illegal for any entity to discriminate against anyone for their protected status, when it comes to taxation. This extends to gender, nationality, s-orientation and religion.
The Fidesz government can expect a likely uprise in penalties going forward for breaking these laws.
Post 18th December 2024, articles that have appeared, inclusive of this “current” titled the “Draconian” – on the subject of Guest Workers and Residency – inclusive – under the status of Residency Permit Holders on-going and FUTURE applicants – by non European Union country applicants, they being passport holders – from non European Union countrys – but countrys that are GOVERNED under DEMOCRACY, who are either living presently, in Hungary – working or as RETIREES – self funded retirees –or of those – considering moving to Hungary.
WHY – is ORBAN – attacking RETIREES – who are self-funded have private medical policy coverage, and in THOUSANDS – through the status of living in Hungary under a Residency Permit – have NO Voting rights.
WHY is Orban, his Government “zoning” in on them ???
Is it because in thousands they are from country’s non E. U. countrys – that are DEMOCRACYS ?
What continues to un-fold, being DELIVERED passed under Law, by usage of the “Rule by Decree” process, – by the Orban – Fidesz Government of Hungary is an ABOMINATION.
It is Descriminatory.
Its of Race Prejudice.
Its Deflamatory.
Its Segregational.
Its Blatancy of Injustice.
Orban, his Government, have caused gargantuan DISTILLATION of DEMOCRACY in the running, the Governance of Hungary, moving us to the Russian & Chinese Communistic ways, with Victor Mihaly. Orban – a STAND out – mirroring enforcing a DICTATOR’s “role play” .
WHAT after 16 years in Government, what has the Orban – Fidesz Government delivered, given us – personally and as a country just not Economically nor Financially but right across HUNGARY – all facets in the OPERATION of our country ?
Hungary – we have been DELIVERED nothing LESS than a Cataclysmic DISASTER – Chaos.
Thousands of Human lives have or WILL be DAMAGED – if we DON’T – in SOLIDARITY – express display our TOTAL disagreement, to the “invasive” Surgery, already implemented and what’s STILL to come, being HANDED out, by the Orban – Fidesz Government, in MASSIVE changes, under the Laws of the Migration and Immigration “Blue Print” criteria of entry, to work or live, in Hungary.
REMEMBER – we ARE Hungary – an “Ageing” lessening in number POPULATION.
Hungary – driven by DEMOCRATIC process PEACEFULLY – if we ALLOW this Orban led Fidesz Government, to succeed in there INVASIVE acts of SURGURY – it will have non reversable “Perilous” near and long term, into the FUTURE of Hungary, the IMPACT will be PARLOUS.
Tisza Party – be the TORCHBEARERS.
Hungarians – voice in growing thousands in SUPPORT they be the TORCHBEARERS.
Tisza Party – MUST elevate – what is FACTUALLY happening in Hungary – this INVASIVE acts of Surgery on Migration / Immigration – Guest Workers – Policy’s put in place, and still to be “signed” – bought into Law, by this Orban led Fidesz Government.
Tisza Party – TORCHBEAR it, to BRUSSELS.
Tisza Party – TORCHBEAR it, not just to the United Kingdom and Norther Ireland and the United States of America, but GLOBALLY spread it OUT – to ALL countrys of the GLOBAL world, that are GOVERNED under DEMOCRACY.
“a country where the government campaigned and won three consecutive landslide victories with its anti-migration policies in the last decade.”
Riiiiiiiiiiiiiiiiiiiiiiiiiiiiiight. Totally ignoring the fact that we’re talking about ILLEGAL immigration here.
Anyway, I’ll be happy to see fewer Subcontinentals here, although the others I don’t have a problem with. That said, we should not be importing workers from literally the other end of the world. If workers are truly needed, then surely we invite those from places closest to use, both geographically and culturally.
But the bigger question is why young Hungarians don’t want to get on a bicycle, ride to a restaurant, pick up a food package, and pedal off for 5-10 minutes to hand it over to whoever ordered it. It is as shameful and it is shocking that we “need” to import Indians(!!!) to do something like that. Let’s try to address the root cause.
Hungary is not unique in having more pensioners vs decline in work age and income tax revenue due to generations of below replacement fertility and emigration.
Suppose they are hoping many temporary international student visa holders will fill the budget gap, but more temporary churn over is needed (paying à fa etc.) to support budgets with more pensioners.
If not, government may need to cut services &/or delivery, raise retirement age, raise taxes and encourage more 14 years+ to work part time &/or seasonally in e.g. hospitality, retail, agriculture etc..
The latter surprises many how young Hungarians, especially late high school &/or post secondary education, don’t work; it’s a rite of passage or youth and students in most western developed nations and essential to develop ‘soft skills’.
Even wealthy western EU and Anglosphere families would be embarrassed to have children who have never worked in the real world…. ‘getting their hands dirty’.
To add as another commenter opined, precluding self funded retirees from residency is suboptimal?
When like other nations they increase aggregate demand, pay consumption taxes (locally 27%), with private insurance they can both support and create new beds (public & private in health system), plus invest and do ‘soft diplomacy’ ie. through word of mouth encourage friends and peers to follow or visit.
Seems to a seriously flawed government policy to discourage temporary churn over, by finance and immigration people in both government and the bureaucracy, suggests this government is reaching its ‘use by date’?