Prime Minister Péter Magyar has defended his government’s plans to tighten restrictions on guest workers, insisting that Hungary’s labour shortages should be addressed through higher wages and better working conditions rather than increased reliance on foreign labour.

PM Magyar says companies should hire Hungarian workers

Speaking at Thursday’s government press briefing, Magyar rejected calls from several businesses to reconsider the planned measures, arguing that companies should focus on attracting Hungarian workers instead of seeking exemptions from the new rules.

The issue came into focus after László Bárány, managing director of the Master Good Group, warned that the company’s planned HUF 350 billion (EUR 985 million) investment could be jeopardised by stricter regulations on foreign workers. He claims project would require around 3,000 additional employees, and he believes they cannot be sourced domestically given Hungary’s demographic trends and labour market conditions.

The company still offers low wages after several boosts by former government

Responding to questions from Portfolio, Magyar singled out Master Good, one of Hungary’s largest poultry producers, arguing that the company’s difficulties in recruiting Hungarian workers stem from low pay rather than a lack of available labour.

He noted that the company had received substantial state support over the past 15 years through various investment and development programmes, which were intended to create jobs for Hungarian workers. Still, numerous complaints have been received regarding wages offered, particularly for physically demanding positions. He argued that businesses benefiting from public funding have a responsibility to provide competitive salaries.

He even cited financial data available to the government. The group recorded after-tax profits of HUF 25.5 billion (EUR 71.8 million) in 2025 and EBITDA of HUF 32 billion (EUR 900 million). In his view, part of these profits should be used to increase wages, helping retain Hungarian employees and encourage those working abroad to return home.

“The goal is Hungarian jobs”

Asked whether the government might reconsider its planned restrictions following criticism from business groups, Magyar made it clear that no policy change is currently under consideration.

He said he had reviewed the objections raised by employers, while also suggesting that some supportive media coverage may have been sponsored. Referring again to Master Good, he maintained that the company pays Hungarian workers too little despite receiving significant state assistance.

“The goal is to create Hungarian jobs and ensure proper working conditions,” the prime minister said. Magyar also raised concerns about the treatment of foreign workers, claiming that guest workers are often forced to live in poor and sometimes inhumane conditions while employed in Hungary.

Budget priorities and new wealth tax

During the briefing, Magyar was also asked whether the state budget could accommodate the government’s recent spending commitments, including a HUF 3.6 billion (EUR 10.1 million) programme to install air conditioning systems in hospitals.

The prime minister described such expenditures as relatively minor compared with what he characterised as previous large-scale losses of public funds. Government officials added that easing pressure on budget expenditures remains a key objective.

On tax policy, Magyar confirmed that the planned new wealth tax would be based on existing wealth rather than increases in wealth. However, he did not rule out the possibility that asset growth could also be considered in the future, noting that further discussions with the finance minister were still required.

Parliament to sit throughout the summer

According to 24.hu, the prime minister also confirmed that Parliament will continue sitting throughout the summer due to the government’s accelerated legislative agenda. Asked whether lawmakers would indeed meet during the entire summer period, Magyar gave probably his shortest answer ever to an interview question: “Yes.” The unusually concise response reportedly amused government spokespersons present at the briefing.

Fresh criticism of President Sulyok

Magyar was also questioned about his relationship with President Tamás Sulyok. He said he had not yet discussed a future meeting with the head of state and criticised the president’s recent public activity.

He claimed that Sulyok had previously failed to stand up for persecuted individuals but had suddenly become much more active in recent months. He also revealed that work is under way on draft legislation that could make it possible to remove the president from office.

Municipalities promised consultations

Another topic raised at the press conference was the solidarity contribution paid by municipalities. Magyar said the government intends to consult local authorities before making further decisions. He apologised to mayors whose requests for meetings had not yet been answered, specifically mentioning the mayor of Győr.

According to the prime minister, the current system requires reform and the contribution should be reduced, although he acknowledged that different municipalities face different financial circumstances. He added that Budapest has been particularly affected by the current arrangements and would require special consideration during the consultation process.