guest workers

Hungarian government loophole: Guest workers can still come to Hungary

guest workers in Hungary

The Hungarian government’s recent regulations on guest worker recruitment may seem like a significant shift towards limiting guest workers, but loopholes in the new policies ensure that the inflow of non-EU workers won’t dry up entirely. Despite reducing the annual guest worker quota and narrowing the list of eligible countries, exceptions for major economic projects and alternative pathways still exist.

Guest worker regulations

As G7 writes, Hungary’s recent tightening of rules on the recruitment of guest workers has sparked debate, but its overall economic impact is expected to be minimal. The government announced a reduction in the annual guest worker quota to 35,000 for 2025, down from 65,000, emphasising a policy of limiting foreign workers. This reflects Prime Minister Viktor Orbán’s pledge to ensure Hungary remains “neither a country of guest workers nor migrants.”

guest workers in Hungary
Photo: depositphotos.com

The exceptions

The new rules restrict eligible non-EU countries to those with readmission agreements, significantly narrowing the list to Georgia and Armenia. However, the late addition of the Philippines as an approved sending country can be explained as a practical adjustment to labour market needs. While these changes align with a politically rational narrative, the macroeconomic impact of fewer guest workers is expected to remain limited.

The loophole

Hungary’s recent measures have tightened regulations for employing guest workers from third countries, reducing the number of eligible nations from ten to just three: Georgia, Armenia, and the Philippines. These changes follow the 2024 introduction of the Aliens Act, which allows only qualified employers—government strategic partners or companies involved in priority national investments—and 29 approved temporary work agencies to recruit guest workers. Contracts for these workers typically span up to two years, with a possible one-year extension, while seasonal agricultural and tourism roles remain available under simplified rules for shorter terms.

Despite these restrictions, exceptions exist for critical economic projects such as investments by BYD in Szeged and BMW in Debrecen, where guest workers can be employed without limitation. Additionally, the National Card scheme, effective in 2024, offers an alternative pathway for certain nationalities, including Bosniaks and Ukrainians, under stricter conditions. These adjustments reflect Hungary’s balancing act between political objectives and economic needs.

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Guest worker situation after regulations change in Hungary: What companies can expect

filipino guest workers hungary

According to the Official Gazette published last Thursday, the government has included the Republic of the Philippines in the new list of countries from which foreign workers can continue to arrive in Hungary. “The decision is a major relief for companies. In addition to being the next largest proportion of guest workers after Ukrainians, the number of guest worker permits issued to them each year is growing most dynamically. At the same time, companies with a larger number of Kyrgyz, Mongolians and Kazakhs will have to rethink their sources of staffing needs after the current permits expire,” says Magdolna Mihályi, Managing Director of Jobtain HR Services.

The government amended its regulation on the employment of foreign workers in Hungary over Christmas. Under the changes, the maximum number of guest worker residence permits and residence permits for employment purposes that can be issued has been capped at 35,000 in 2025. At the same time, the list of third countries from which foreign workers can be imported has been significantly reduced.

filipino guest workers hungary
Illustration. Photo: depositphotos.com

Far fewer countries to send guest workers in 2025 than before

According to the decree, as of 1 January, nationals of Ukraine, Serbia, Bosnia and Herzegovina, the Republic of North Macedonia, the Republic of Belarus, Moldova, the Republic of Montenegro and the Russian Federation will continue to be employed as guest workers in Hungary with a National Card. Georgia and Armenia, and, under Thursday’s decision, the Republic of the Philippines, as new countries, are now allowed to work as guest workers or with a residence permit for employment purposes.

“In September 2024, the Philippines opened its office in Hungary – Labor Office of the Philippine Embassy – where they will represent the interests of Filipino workers working in Hungary and in the neighbouring countries and ensure full compliance with the requirements of the Hungarian Government, if necessary,” said Magdolna Mihályi. She adds that the Philippine Government attaches the utmost importance to ensuring that its nationals working abroad comply with the labour and immigration laws of the host country during the period of their residence permit.

Other possibilities for the importation of guest workers

In the future, guest workers can only be imported from a country with which Hungary or the European Union has a readmission agreement or which has a state-recognised organisation in Hungary that can arrange for the third-country guest worker to leave Hungary and return to their home country if necessary. “It is also very important to underline that those who have been working in Hungary with a valid permit on 31 December 2024, or who have applied for this permit by the last day of the year and the administrative fee has been paid after them, can complete their contract and receive the 1-year extension. Thus, the employment of previously contracted foreign workers will not be terminated immediately. This means that companies will have enough time – up to 1-2 years – to prepare for the employment of nationals of another nation, should the need arise. Foreign labour can continue to be brought in for priority investments in the national economy without restriction. South Korean and Chinese companies are likely to continue to make use of this possibility,” said the Jobtain expert.

Hungarian labour pool can still be mobilised, but guest workers are needed

There are currently around 4.7 million Hungarian workers in the country. However, many more people are leaving the labour market than entering it: 140-180 thousand are leaving and only 90-100 thousand are entering. “With almost full employment, it is difficult to find new domestic resources, although there are still some groups that can be mobilised. In line with the government’s strategy, temporary employment agencies are also focusing on retaining Hungarian nationals and increasing their numbers, but we cannot completely abandon the import of guest workers. And with the planned economic recovery, there will be an even greater need to employ foreign workers subject to strict rules,” stresses Magdolna Mihályi.

Although firms’ demand for labour has fallen somewhat recently due to low economic growth, there is still a significant demand for labour in certain industries. Examples include the food and pharmaceutical industries. “As the economy picks up again, it is likely that the manufacturing and hotel industries will again face significant shortages. Third-country migrant workers are typically currently working in jobs where it is already very difficult to find Hungarian workers,” Jobtain’s CEO concludes.

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Kaposvár club faces backlash after banning Turkish workers

park 74 kaposvár turkish workers ban

A nightclub in Kaposvár, Hungary, has stirred controversy by banning Turkish guest workers, citing safety concerns for its employees and patrons. The PARK74 club announced the decision on Facebook, claiming that some Turkish workers had repeatedly harassed other guests.

Reasons behind the ban

As we wrote on Monday, the Facebook post stated, “Several complaints from the city and our own observations have shown that they [Turkish workers] fail to behave appropriately. PARK74 aims to provide a safe and enjoyable environment for everyone, but this seems incompatible with the behaviour of some guest workers.” The management emphasised the importance of prioritising safety, which they claim led to this decision. The announcement was also shared in Turkish to ensure clarity (find it below).

Reports of misconduct

PARK74’s legal representative, Richárd Takács, told Telex that the influx of Turkish workers began in the spring of 2024 due to a significant investment by the Turkish company Şişecam, which is building its first European glass packaging plant in Kaposvár. This HUF 73 billion (EUR 177 million) project has attracted hundreds of Turkish workers to the area.

Initially, their presence at the club caused no issues, but complaints started last fall. Takács mentioned incidents of inappropriate behaviour, including throwing glasses at bar staff, unsolicited physical contact with women, and offensive remarks. These incidents prompted the club to install a metal detector at the entrance for the first time in over a decade. The situation escalated on a recent Saturday evening when a Turkish patron allegedly climbed into the DJ booth and threatened the DJ. When staff intervened, the individual’s friends surrounded the bouncer, creating a tense and intimidating atmosphere.

park 74 kaposvár turkish guest workers ban (1)
Photo: Facebook/PARK 74 Kaposvár

Legal and ethical questions

When questioned about the legality and morality of the ban, Takács stated, “The safety of our employees and guests, and their right to enjoy themselves peacefully in their hometown, takes precedence over any rights of guest workers.” He also explained that entry restrictions would be enforced based on observable traits and, if necessary, by checking photo IDs.

Mixed reactions and official responses

The announcement has sparked a range of reactions. Many social media users supported the club’s decision, applauding its commitment to safety. Others, however, raised concerns about discrimination. The Hungarian Helsinki Committee criticised the blanket ban as discriminatory and suggested alternative measures. They stated, “While it’s commendable to protect guests and prevent harassment, this should be done through clear rules and individual sanctions, not by targeting an entire nationality.”

Meanwhile, local police reported no increase in crime or public safety issues related to Turkish workers in Kaposvár. The authorities confirmed that no formal complaints or reports regarding incidents at the club had been filed recently. The debate highlights the tension between ensuring safety and avoiding discrimination, a challenge that has gained visibility in light of Hungary’s increasing reliance on foreign labour.

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Scandalous: Turkish guest workers banned from Hungarian nightclub

Turkish guest workers banned from Hungarian nightclub

A nightclub in Kaposvár has caused a stir by banning Turkish guest workers, citing safety concerns after ongoing disturbances. The decision comes at a delicate time, as the city prepares for the opening of the Şişecam glass factory, a major Turkish-led project set to have a huge economic impact on the region.

Turkish guest workers banned

As Blikk reports, the Park 74 nightclub in Kaposvár has sparked controversy with its recent decision to ban Turkish guests in an effort to maintain a safe and enjoyable environment. Announced via a Facebook post, including a Turkish-language version for clarity, the management cited frequent incidents of harassment and disturbances involving Turkish guest workers as the rationale behind the move. The nightclub stated that repeated issues, including guest expulsions, left them no choice but to take this action. While aiming to ensure a secure nightlife experience, the decision has drawn attention and mixed reactions, highlighting challenges in balancing community concerns with inclusivity.

Turkish investment in Kaposvár

The situation is particularly sensitive given the major Turkish investment in the region: the Şişecam glass factory. As Sonline has previously reported, originally set to open last autumn, the project, now scheduled for a spring launch, represents the largest industrial endeavour in Kaposvár’s history and is expected to have a substantial economic impact.

Related article: Kaposvár club faces backlash after banning Turkish workers

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Guest workers update: Filipino workers continue to have access to Hungary despite no formal agreement

guest workers ban hungary

Despite there being no formal repatriation agreement between Hungary and the Philippines, Filipino guest workers can still be employed in Hungary. This was confirmed in a foreign ministry statement published in the Official Bulletin on Thursday evening.

According to Telex, under Hungary’s new 2024 regulation on guest workers, employees from non-EU countries can be hired, provided that their country of origin has a formal agreement allowing their return in case of expiration of stay or legal violations. However, no such agreement exists between the Philippines and Hungary or the European Union.

The Philippines has long been a significant source of guest workers to the EU, including Hungary, with labour brokers keen to maintain this flow. The regulation provides a provision allowing workers from countries without a repatriation agreement to be employed, as long as their country has a recognised organisation or office in Hungary that guarantees the worker’s repatriation. According to the Ministry of Foreign Affairs, the Philippines is the only country currently on this list, with an established office in Hungary that ensures the return of its workers if necessary.

Read more news concerning guest workers in Hungary HERE.

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Hungary lowers guest worker cap, 10 countries on the banned list

guest worker workers

Hungary has lowered the cap on the number of guest work permits issued to non-European Union nationals to 35,000 for 2025 in a decree issued by by the national economy minister.

Guest worker cap in Hungary

The new cap was set prioritising the protection of Hungarian families, employees, and the labour market, the National Economy Ministry said in a statement.

The ministry noted that the cap was less than half of the regulatory maximum: the average number of unfilled workplaces in the previous four quarters, or 71,000, according to data from the Central Statistics Office (KSH).

There is no doubt how many inactive reserves there are in Hungary and how to attract them into the labour market.

As we have already reported, in a village in Somogy County, Filipino guest workers are milking cows.

The phenomenon is not unique and points to a deeper problem: in many cases, no reliable Hungarian workers who could be hired for a particular job were found either locally or from the surrounding area. In contrast, behind the tightening is the government’s consistent policy of filling vacancies by activating the Hungarian labour reserve and attracting jobseekers and inactive people.

Viktor Orbán said in a Facebook post on the subject. Therefore, we will not let migrants in, and only as many guest workers as we need.”

Mr Orbán also noted that the Qatari model had been copied and modified, but that the essence of the regulation came from there. The Hungarian PM pointed out that all countries have been given a transitional period to create legislation on readmission, and our country will not accept those who fail to do so. Accordingly, ten countries were immediately removed the list, so that no guest workers can come from them. The government has not named the 10 countries, but we will inform our readers as soon as it becomes available to the public.

As we reported earlier, the amendment, published in the Hungarian Gazette on the night of 23 December, states that third-country nationals may be employed in Hungary if Hungary or the European Union has a readmission agreement with that country.

related article: Hungarian Government drastically tightens guest worker rules from 2025!

Two countries are mentioned in the Annex as exceptions, Georgia and Armenia. The Regulation does not apply to the renewal of permits issued until 31 December 2024. Neither will it apply to pending cases that have already commenced.

Orbán told a press conference that there is a quota, 65,000 last year and only 35,000 this year, under which guest workers can arrive. The government believes there are still 300-500,000 people who can be brought into the labour market in Hungary. The final decision on how to do this will be taken in January-February.

Emigation, low-wage policy

Another issue is that the Orbán government, which has been in power for 14 years, has failed to stop the emigration of Hungarian workers abroad. There are still hundreds of thousands of valuable workers in Western Europe because Hungarian wages cannot compete with those in Germany or Austria, for instance.

However, the Hungarian government does not intend to change its low-wage policy, because this is how they can attract foreign investors, who receive huge subsidies if they come here, and can operate here at a discount, with low wages and a high-quality workforce.

There is also the serious question of where the labour of the foreign factories attracted here will be filled, because labour shortages are already being experienced in many sectors, and this will exacerbate the problem by the opening of more factories.

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Attention! Hungary reintroduces Schengen border control on the entry side from this country

Draconian measures for guest workers to be implemented in Hungary from 1 January, details HERE

Draconian measures for guest workers to be implemented in Hungary from 1 January

Draconic strictness comes in Hungary concerning guest workers 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.

Debrecen BMW plant construction reaches important milestone guest workers
Illustration. Photo: MTI

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.

guest worker from india hajdúnánás
PrtScr/ATVnews

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.

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Breaking news: Hungarian Government drastically tightens guest worker rules from 2025!

guest worker workers guest workers in Hungary Orbán cabinet

From the 1st of January 2025, the Hungarian government will introduce significant changes to the Migrant Workers Act, resulting in stricter rules for workers from non-EU countries. The changes are designed to ensure that guest workers can return to their home countries and to limit the scope of workers’ countries of origin.

According to the amendment, it is no longer sufficient for the country of origin of the guest workers to simply promise to take them back. The government is demanding a stronger guarantee that workers will actually leave Hungary when their permits expire.

foreign workers guest workers in Hungary
Photo: Pixabay

As Telex reported, the list of countries of origin has also been substantially revised. While the list previously included countries such as the Philippines, Vietnam, Indonesia and Mongolia, the new rules mean that only two countries, Georgia and Armenia, are now eligible to send guest workers to Hungary. This effectively invalidates the previous list and narrows the possibilities for workers to come.

Maximum framework for guest workers from 2025

According to an official statement by the Hungarian Ministry of National Economy, the number of residence permits that can be issued will also be determined from 2025. This number will be capped at 35,000 per year, including both guest workers and residence permits for employment purposes. This move is intended to keep the number of guest workers under control and to adapt it to economic needs.

guest worker workers guest workers in Hungary Orbán cabinet
Photo: depositphotos.com

Government statements and industry reactions

At his end-of-year press conference, Prime Minister Viktor Orbán made it clear that the changes were not unexpected. He stressed that countries that have not undertaken to take back guest workers cannot expect Hungary to accept their workers from the 1st of January 2025. “Ten countries immediately fell off the list, maybe more,” Orbán stated, adding that the countries concerned had been informed in advance. The Prime Minister said that the tightening was in the country’s interest and there was no question of introducing it.

However, the government’s decision was not preceded by a broad consultation of businesses directly involved in the employment of guest workers. News of the tightening therefore came as a surprise to the business community. There had already been talk of the Hungarian government imposing an almost total ban on the employment of non-EU workers in Hungary, but there had been no meaningful consultation on the impact this might have on the economy and the businesses involved.

The importance of these changes

There are several reasons behind stricter regulation. On the one hand, the government is concerned with the protection and stability of the country’s labour market, and on the other hand, it is also focusing on social inclusion issues. Countries that do not ensure the readmission of guest workers will not be allowed to send workers to Hungary in the future, which clearly reflects a tightening of migration policy.

The new guest worker law introduces sweeping changes that severely restrict the countries of origin of workers, cap the number of permits that can be issued and ensure the return of workers to their home countries. While the decision is driven by strategic objectives, the changes may pose unexpected and significant challenges for operators and companies. How the government manages the feedback from economic operators and the labour market will be important in the coming period.

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Planned guest worker ban linked to Hungarian government’s fears of rising unemployment?

guest workers ban hungary

Recent reports suggest that the Hungarian government may be planning to implement a ban on employing guest workers from non-EU countries, effective 1 January 2025. This move has sparked concern among local businesses, particularly those that rely heavily on foreign workers. While the government has not officially confirmed the proposal, industry leaders are speculating that rising unemployment rates may be the driving force behind this drastic measure.

As we reported before (HERE and HERE), sources indicate that, under the new policy, workers from most non-EU countries would no longer be eligible for new work permits, with the notable exception of those from Georgia. The measure would also prevent the extension of work permits beyond the current one-year option for workers who were initially granted two-year permits. This potential legislation has left businesses, especially in sectors like manufacturing, logistics, and delivery services, anxious about the future of their workforce.

No consultation between government and businesses

The government’s decision to introduce this policy with minimal consultation has caused confusion and panic among company leaders. Some have speculated that the government is attempting to preemptively tackle expected increases in unemployment in the coming months, 24.hu reports. Concerns are rising that, as the economic situation worsens, local workers may begin losing their jobs, and the government may want to avoid visible signs of foreign labour filling those gaps.

guest workers ban hungary
Photo: depositphotos.com

For companies like Master Good, which depend on a significant number of guest workers, the move could have dire consequences. Without guest workers, these companies fear that growth could be unsustainable, and current production levels may even decrease.

Though the details of the proposed regulation remain unclear, the rapid, potentially disruptive change is concerning for many businesses. Company executives argue that such a sweeping policy change cannot be implemented without proper discussion and a reasonable adjustment period. Given the economic challenges already facing Hungary, they worry that restricting guest worker employment could further harm the economy, potentially causing a significant downturn in the country’s GDP.

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Several companies in great need of guest workers shocked by Orbán cabinet’s ban proposal – UPDATED

The Orbán cabinet may decide about the total ban on employing third-country guest workers in Hungary from 1 January. The news shocked several sectors in Hungary, especially the catering and the home delivery sector which are struggling with the lack of workforce. The Hungarian government may decide on a total ban due to domestic reasons. However, even the Hungarian Chamber of Commerce and Industry’s head says the government should not move so urgently on such a delicate issue.

Immigrants take the work from the Hungarians, said Orbán’s Fidesz

The Orbán cabinet has been one of the greatest advocates of stopping illegal migration to Europe from the Middle East and Africa. In the previous decade, the prime minister and his Fidesz party accepted harsh rules against illegal migrants, built a fence at the Southern borders and allied with European and North American forces that are against migration.

In 2015, they started a billboard campaign saying that migrants take the work from Hungarians, so they should be stopped before entering the country. The campaign was successful, but rural Fidesz leaders active in the electoral districts and mayors see changes in the issue locally.

Some were complaining about the growing number of legal migrants who come to Hungary to work here for 2+1 years and “take the work from the locals”. Of course, the second part of the statement is factually untrue. The Hungarian economy could employ tens of thousands because it struggles with a structural labour shortage. Others were complaining about the possible security challenges the newcomers generated.

Read also: Shocking proposal: Hungary plans ban on non-EU guest workers starting 1 January

Fidesz grassroots complained about the guest workers

However, optics are crucial for the government and its communication. Based on a 2023 poll by Publicus, 53% of Fidesz voters disapprove of the influx of guest workers. Their support is essential in 2026 when Péter Magyar’s Tisza Party has a realistic chance to defeat Orbán.

PM Orbán heard the complaints from Fidesz grassroots and seems to have decided to act. Based on a previous report, the government may decide on the issue next Wednesday, so the sectors affected and somewhat paralysed by the news do not have much time to act.

According to g7.hu, only a fraction of the number of 2023 guest workers came this year. However, for example, in the catering sector, firms close one after the other because there are no employees for the night and weekend shifts. Orbán promised significant economic growth for next year, which is also hard to imagine without a new workforce, József Nógrádi, trade director of the Trenkwalder group, said.

Will the ban be postponed?

Therefore, lobbying started to postpone the effect of the new measure for at least six months.

We know the government would not like to ban the Georgian workforce, but they will not be enough to fill the gaps in the Hungarian labour market. Others lobby to exempt the Philippines, criticising Vietnamese, who – after acquiring their permit – go to Germany to receive higher salaries.

The new head of the Hungarian Chamber of Commerce and Industry was also surprised to hear about the government proposal. When he replaced government-close László Parragh, he said he agreed to a new cooperation framework, which means they can take part in the drafting process of new measures from the beginning. However, this time, nobody asked for their opinion.

Georgia is not enough

Elek Nagy said the government wants to make agreements with the home countries of the guest workers about taking them back if needed. Hungary had such a contract only with Georgia, which is the reason for the Caucasian country’s exemption.

Nagy believes the Hungarian reserves are not enough to satisfy the needs of the economy. Meanwhile, Georgia’s population is just 3.5 million, while the Philippines has almost 120 million inhabitants. Consequently, signing new treaties with more populous countries is crucial.

Experts believe a ban would not immediately have a devastating effect because most guest workers can remain here for months or even 1-2 years.

Interestingly, other Central and Eastern European countries try to ease the employment of guest workers.

The number of third-country employees in Hungary stays around 70-80 thousand, but the growth in their number is constant. Between 2019 and 2024, for example, that number increased from 60 thousand to almost 100 thousand.

UPDATE: Hungary committed to contributing to efforts aimed at stopping migration

Hungary is committed to continuing its contribution to the success of international ambitions aiming at stopping illegal migration and tackle its root causes, the foreign minister said in New York on Thursday.

The ministry cited Péter Szijjártó as telling the United Nations General Assembly session focusing on migration that it was not an exaggeration to say that we are living in an era of dangers and as an impact under the threat of terror and extremist ideologies, there are more and more people in the world who are forced to leave their homes. In the last ten years, more than 120 million people became migrants, refugees, IDPs, he added.

“In this very complicated situation I think there are two very important aspects we do have to take into consideration. First, international law must be respected. With this we can avoid additional massive migratory waves to break out putting the security and safety of countries at risk. And on the other hand, instead of managing or inspiring migration, we should work on tackling the root causes,” the minister said.

“International law makes a very very clear difference between migrants and refugees. Unfortunately nowadays the expression and legal status of refugees is being misused, which is a very dangerous phenomenon. International law speaks very clearly: if someone is forced to leave his or her home, he or she is entitled to stay on the territory of the first safe country. And international law doesn’t speak about second, fifth, tenth or twentieth safe country,” he added.

“Therefore, violation of a border between two safe countries must not be taken into consideration as a human rights issue, but as a security issue and as a crime,” he said.

“Hungary’s example is the real one here, we have been under a double pressure by migration and the refugees for the last ten years. On one hand we have been living for more than a 1,000 days in the neighbourhood of the war in Ukraine from where we have received 1.4 million refugees. They have full access to our schools, kindergartens, health care, and to the labour market. We have been carrying out the biggest ever humanitarian operation of our country. We let everybody come in from Ukraine who are fleeing from the war because for them we are the first safe country. But at our southern border we are under a huge migratory pressure. There we are protesting the external border of the European Union laid on the busiest land route. During the last 3.5 years we have stopped more than half a million illegal migrants.

Hungary remains committed to protecting its borders and remain maintaining its sovereign right to make a decision on who can enter our country and with whom we are ready to live together, said the minister.

He said that “in the meantime, we give all our support to those who are fleeing from the war in Ukraine. And we support all kinds of initiatives which are pointed at peace being made in our neighbourhood, which is the only way to save lives of the people, ending suffering of the families, and stop forcing people to leave their homes.”

But in the meantime, inspiring people to leave their homes brings forward many risks on countries of transit and destination puts the lives of people who are leaving their homes at risk on many occasions and feeds the business model of smugglers and traffickers. So instead of inspiring people to leave their homes, we do have to stop migration by tackling the root causes on the spot. We have to carry out development programmes, by those creating new jobs, creating better education, and better access to health care where it is needed.

Over the last five years, Hungary has spent some 2 billion euros on development assistance focusing on humanitarian help, especially to the Christian communities who are among the most persecuted communities in many parts of the world., the minister noted.

“Hungary is committed to continue to contribute to the success of international ambitions aiming at stopping migration, tackling the root causes and carrying out development programmes in all parts of the world to make the lives of people better where they have been living,” he said.

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Shocking proposal: Hungary plans ban on non-EU guest workers starting 1 January

The Hungarian government is poised to implement significant restrictions on the employment of non-EU guest workers, starting 1 January 2025, according to 444.hu. A proposal to tighten regulations could be discussed at Wednesday’s cabinet meeting, marking a sharp shift in policy. The move aims to address growing domestic discontent over the increasing presence of foreign workers.

Key measures in the proposal

As to 444.hu reports, under the draft regulation, no new work permits would be issued to third-country nationals, except those from Georgia. Additionally, existing two-year work permits with a one-year extension option would lose this renewal flexibility. The new rules could effectively ban non-EU workers from Hungary, with only minimal exceptions.

Political pressure and public sentiment

The issue was a focal point during Monday’s parliamentary session. László Toroczkai, leader of Mi Hazánk, criticized the surge in guest workers, highlighting their dominance in food delivery jobs and accusing the government of prioritising foreign employment over opportunities for Hungarians. Prime Minister Viktor Orbán responded firmly, asserting:

“If their working hours are up, they must leave the country… As long as I’m Prime Minister, all guest workers will go home.”

Sources suggest the decision is largely political, driven by complaints from influential Fidesz politicians representing rural areas. They face mounting pressure from voters who are uneasy about the sudden influx of guest workers. Concerns include fears over public safety and the perception that foreign labour is taking jobs from locals.

Efforts to delay implementation

The proposal has already sparked behind-the-scenes lobbying. Some are pushing for a later implementation date—1 July 2025—while others advocate for exceptions for workers from countries like the Philippines, a significant source of labour for Hungary in recent years.

Context: Hungary’s guest worker market

Hungary already has the strictest guest worker regulations in Europe, as Orbán emphasised in parliament. If enacted, these new measures would solidify its position further, signalling a strong stance against labour migration from outside the EU.

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Featured image: depositphotos.com

The influx of guest workers in Hungary decreased significantly this year

The landscape for guest workers in Hungary is undergoing a significant shift as economic challenges and stricter regulations reshape labour demand. While the influx of foreign workers has slowed, key sectors like logistics and hospitality still rely heavily on overseas labour, highlighting the growing complexities of Hungary’s workforce dynamics.

Number of guest workers in Hungary faces a major shift

As Portfolio reports, the influx of guest workers in Hungary has shown a notable shift this year, as economic challenges have caused the steady rise in numbers to plateau. According to the Hungarian Central Statistical Office (KSH), nearly 100,000 foreign workers were recorded in autumn, reflecting a decrease in growth.

Magdolna Mihályi, managing owner of Jobtain HR Services Ltd., explained that while the import of foreign workers continues, it has slowed due to a 5% drop in industrial production compared to last year. Factors contributing to this slowdown include a recession in the automotive sector, reduced investment, and stricter government regulations on foreign labour assessments. Additionally, Hungarian labour reserves are being mobilised more actively, further influencing the demand for foreign workers.

What is fueling the change?

Magdolna Mihályi of Jobtain HR Services Ltd. highlighted several factors behind the trend described above, including a sharp decline in investments, a recession in the automotive sector, and stricter government regulations on foreign labour assessments. Similarly, József Nógrádi, Commercial Director of Trenkwalder, noted a 25% drop in the inflow of foreign workers compared to last year, attributing it to European economic stagnation and tighter Hungarian policies. With domestic worker recruitment on the rise and existing guest workers filling critical roles, demand for foreign labour has fallen by 30% compared to the previous year. Stricter regulations have also improved transparency and eliminated exploitative practices, contributing to a more regulated labour market.

Struggling sectors

The demand for guest workers in Hungary is shifting as economic conditions vary across industries. While the automotive and construction sectors face redundancies, logistics, transport, and food continue to attract workers, particularly from the Philippines, Vietnam, India, and Indonesia. Despite efforts to mobilise domestic workers, labour shortages persist in hospitality, IT services, and waste processing. Experts note that Hungary’s declining working-age population and nearly full employment make foreign labour indispensable, though future demand depends on economic recovery and government policies. With strict regulations, the number of guest workers in Hungary is expected to stabilise around 150,000.

Hungary's dairy farm industry dominated by Phillipine, Indian, and Sikh guest workers
Photo: depositphotos.com

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Featured image: depositphotos.com

Tax benefits change, 3rd-country guest workers will earn less in 2025 in Hungary!

Ukrainian and Serbian guest workers in Hungary should not be worried about the changes; however, Vietnamese, Indian, Kyrgyz, Kazakh, Montenegrin, Venezuelan, etc. employees will earn less if they raise children, are below 25, or get a tax benefit due to marriage.

New rules will decrease the salaries of many guest workers in Hungary

Regarding tax benefits, the Hungarian state is rather generous to families raising three or more children. On the other hand, allowances based on social status are much lower than in most European countries because the Hungarian government believes such financial help should only be given to those who work and, as a result, contribute to the country’s GDP increase.

Although the Hungarian government seemed committed to attracting guest workers to Hungary with several alleviations, a significant change is coming in 2025 thanks to the modification of tax laws in Hungary.

According to Telex, many guest workers will no longer be eligible for family tax benefits, lose the allowance for young couples in first marriage, and can no longer receive the tax benefits for employees under 25.

Hungary"s population Hungary guest workers government ban golden visa guest workers in Hungary third-country nationals' tax benefits
There are around 70 thousand unfilled positions in Hungary. Photo: depositphotos.com

The good news is that the modified tax rules do not apply to guest workers coming from neighbouring countries. Therefore, Ukrainians and Serbians should not be worried. However, all other citizens coming from non-EEA countries should be aware that their revenues may fall next year.

Three types of tax benefits will be unavailable

According to Telex, based on the LV. Law of 2024 about the change of several tax laws, from January, Vietnamese, Indian, Indonesian, Kyrgyz, Uzbek, Venezuelan, Montenegrin, Filipino, etc. workers may earn less. The reason is that they and all other 3rd-country nationals not coming from the neighbouring countries 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.

Telex wrote that one of the biggest Hungarian HR companies informed its employees about the changes. That means all of them will have to pay 15% personal income tax and 18.5% social security contribution. The calculation is simple: your gross wage minus 33.5% will be your net salary paid in cash or transferred to your bank account.

This means that if a 3rd-country employee not from neighbouring countries like Ukraine or Serbia is employed for a HUF 450,000 (EUR 1,100) gross wage per month, he gets HUF 299,250 (EUR 731) even if he e.g. raises three or more kids.

Employees raising one kid will get HUF 10,000 (EUR 24) less, and that number increases to HUF 40,000 (EUR 98) in the case of two kids and HUF 99,000 (EUR 242) in the case of three kids. Young employees under 25 will receive 15% less (because they will have to pay personal income tax), while young couples in first marriage will get HUF 5,000 (EUR 12) less.

Stricter conditions to hire guest workers

Earlier this year, the Orbán cabinet introduced stricter rules concerning the employment of guest workers. First, employers punished with administrative or OSHA fines in the previous 12 months cannot hire a guest worker. Secondly, they cannot hire a guest worker from a third country if they were punished for illegally employing guest workers before. Finally, employers under compulsory liquidation, and forced strike-off cannot hire a guest worker. Moreover, if a Hungarian employer rejects to hire a Hungarian job seeker due to unsupported claims, they should expect sanctions.

According to Telex, employers believe those modifications did not prevent the growth of the number of Asian guest workers in Hungary. FM Péter Szijjártó talked about 128,000 workers from countries outside of the European Union in Hungary in October. Of course, the majority of them are Ukrainians and Serbians. Meanwhile, the number of unfilled positions stood at 71,000 then.

The increase in the number of guest workers flattened

Károly Radnai, the CEO of Andersen Adótanácsadó Ltd, agreed with the abolishment of the tax benefits for 3rd-country guest workers since the government’s aim is not to settle those employees. According to the latest data from the Hungarian Central Statistical Office (KSH), the number of guest workers in Hungary stagnated in the past few months. Telex or the KSH did not give a reason, but it is a fact that the Hungarian government is struggling with multiple structural problems, and GDP growth is expected to be extremely low this year.

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Featured image: depositphotos.com

Many tax benefits will no longer apply to third-country nationals in Hungary from 2025

Hungary’s tax laws offer various tax benefits to eligible residents, with significant updates recently affecting third-country nationals. While the family tax allowance was accessible to many, offering substantial support based on the number of dependants, changes coming into effect from 2025 will exclude third-country nationals from several key allowances.

Tax benefits in Hungary

In Hungary, third-country nationals were eligible for certain tax benefits, particularly the family tax allowance, provided they met specific conditions. To qualify, at least 75% of their annual income had to be taxable in Hungary, and they should not have received similar benefits from another country for the same period. The family tax allowance was available for dependants, including children eligible for family support and unborn children during pregnancy.

The allowance amount varied based on the number of dependants, with increased benefits for permanently disabled or severely ill children. This allowance could be claimed either through an employer’s tax advance declaration or during the annual tax return process. However, since August 14, 2023, third-country nationals are no longer eligible for the social contribution tax allowance that employers could previously claim for newly entering the labour market.

Big changes in 2025

The recent amendments to the Hungarian income tax laws, as outlined in the Magyar Közlöny, introduced several significant changes affecting third-country nationals. One of the key updates is related to the family tax allowance, which has been adjusted to provide increased financial support based on the number of dependants. For instance, the allowance for one dependant rose to HUF 133,340 (EUR 325.25), while for two dependants, it increased to HUF 266,660 (EUR 650.47), and for three or more dependants, it reached HUF 440,000 (EUR 1,073.30) per month.

The amendments specified that both EEA citizens and citizens from non-EEA countries bordering Hungary are eligible for these tax benefits. However, it is important to note that third-country nationals are no longer eligible for social contribution tax allowances that were previously available to employers hiring new workers from outside the EU. From 1 January 2025, they will no longer be eligible for the tax credit for starting a life. However, it is still not clear whether third-country nationals would be still eligible for the family tax allowance.

We will keep our readers updated on the topic as we gain more information.

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Featured image: depositphotos.com

Shocking data: Hungary’s dairy farm industry dominated by Filipino, Indian, and Sikh guest workers

Hungary's dairy farm industry dominated by Phillipine, Indian, and Sikh guest workers

According to György Raskó, a Hungarian agricultural economist, 5-600 guest workers from India and the Philippines work in the Hungarian dairy farm industry because it is more difficult to find Hungarian workforce in that sector.

Based on Szeretlek Magyarország, the number of guest workers in the sector is continuously growing. An advantage of employing an Indian guest worker is their religion, which commands them to treat dairy cattle well.

He mentioned Homokszentgyörgy as an example, where the owner could not find Hungarian workforce for the 700 Holstein Friesian dairy cattle and 600 hectares of farmland. Interestingly, they even employ people from South America, e.g. from Guatemala or Venezuela.

Hungary's dairy farm industry dominated by Phillipine, Indian, and Sikh guest workers
Illustration. Photo: depositphotos.com

Mr Raskó said that employing guest workers in the industry started 20 years ago. Now, mostly Indian, Filipino and Sikh workers satisfy workforce needs. He added that Asians in the dairy industry are trustworthy and hard-working, which is crucial since milking is a 24/7 job, and one cannot be late. Since one of the basic teachings of Hinduism is the love for animals, Hindu workers start with an advantage.

Good salaries, free accommodation

Raskó shared another strange piece of data: Hungarians are no longer keen on keeping livestock. Livestock density is the second lowest in the European Union, with 0.4/hectare. That is because livestock almost disappeared from households and farms and is concentrated in huge compounds.

The salaries are acceptable in the sector, an average of USD 1,000/month. Furthermore, the accommodation is free. They remain here for years to collect as much money as possible. Moreover, in some compounds, family members exchange with each other.

Hungary's dairy farm industry dominated by Phillipine, Indian, and Sikh guest workers
Illustration. Photo: depositphotos.com

Raskó said Hungary can only employ guest workers in the livestock industry. Such a scheme would not be profitable in the crop husbandry sector. There, they must employ Roma people who are “not trustworthy enough”.

Number of unemployed constantly rising in Hungary

Hungary’s jobless rate for people between the ages of 15 and 74 stood at 4.5pc in October, data released by the Central Statistics Office (KSH) on Friday show.

In absolute terms, there were 219,400 unemployed. The number of employed averaged 4,698,500 in October, down 26,500 from twelve months earlier. KSH noted that the drop was from a high base. For the period August-October, average employment numbers were down 13,500 at 4,703,100. The number of people on the primary employment market edged down to 4,537,000. The number of Hungarians working abroad was little changed at 107,000. The number of people in fostered work programmes was down at 58,000.

The employment rate for the 15-64 age group edged up 0.2pp to 75.3pc. Data from the National Employment Service (NFSZ) show there were 226,000 registered jobseekers at the end of October, unchanged from twelve months earlier.

Jobseekers spent 12.1 months, on average, looking for work, but 48pc of the jobless found new positions in under three months. The percentage of jobless who had been looking for work for at least one year reached 34pc.

Sándor Czomba, the state secretary for employment policy, in a statement issued by the National Economy Ministry said the number of employed people has been at a consistently high level for more than a year, hovering around 4.7m. The minimal decrease seen in October is due to the fact that the number of employed people was at a historically high level last autumn.

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  • New Hungarian airline founded with Chinese help – read more HERE
  • Hungarian MPs decide on important tax laws

Filipino workers step in to milk cows in a small Hungarian village

Filipino workers milking cows in small Hungarian village

In the Hungarian village of Homokszentgyörgy, Filipino workers have stepped in to fill crucial roles at a dairy farm, caring for cows and handling demanding year-round tasks. With local interest in agricultural jobs dwindling, the farm turned to foreign labour through an agency, providing accommodation and integrating the workers into the community. Despite the challenges, both the villagers and the workers have formed a positive relationship, showcasing a unique solution to rural Hungary’s labour shortages.

Filipino workers and locals get on well

In the small Hungarian village of Homokszentgyörgy (with a population of around 900), Filipino workers have taken up a surprising role—milking cows and caring for livestock at a local dairy farm. While the presence of foreign labourers in industrial sectors is now commonplace in Hungary, seeing them in rural agricultural roles marks a significant shift.

According to the report of Sonline, the six Filipino workers live in a refurbished house on Petőfi Street, provided by their employer. Despite not speaking Hungarian, they have integrated into the village community with their polite demeanour and cheerful greetings, endearing themselves to neighbours like Mária Serdültné Kuti, who praises their manners and finds no issue with their presence. The villagers, however, recognise the necessity of hiring foreign workers, citing the lack of interest among locals in such demanding jobs.

Filipino workers milking cows in small Hungarian village
Illustration. Photo: depositphotos.com

According to Homokszentgyörgy’s mayor, János Czinke, the positions at the dairy were likely advertised locally, but either there were no applicants, or they lacked the necessary qualifications. He also notes that foreign workers often accept lower wages, which might make them more attractive to employers.

The need for year-round labour is crucial

At the Bos-Frucht Agrárszövetkezet farm, which manages 700 Holstein Friesian cows and 600 hectares of land, the need for reliable year-round labour is critical. President Barna Egyed explains that maintaining a livestock operation requires dedication every day of the year, from feeding and cleaning to handling veterinary procedures and regular milking schedules. Unfortunately, the local workforce has dwindled, with few young, motivated individuals willing to take on such demanding work.

The Filipino workers, most of whom have prior experience in animal husbandry, were recruited through an employment agency. They quickly adapted to the farm’s rigorous schedule and formed a positive impression of the village. Justine Neil Delgado, one of the workers, shares their perspective with Sonline:

“The work is hard, but we manage. The local people are kind and respectful, and we appreciate them.”

Work and rest: The life of the Filipino workers in Homokszentgyörgy

Life at their accommodation reflects their simplicity and adaptability. With bicycles in the yard and laundry drying on the fence, the Filipinos focus on their work and rest rather than venturing into the village. The cold Hungarian November is a stark contrast to their tropical home, but they’ve adjusted to their new surroundings.

This situation underscores broader trends in Hungary’s labour market, where an ageing population and a lack of interest in certain jobs are paving the way for foreign workers to fill essential roles in unexpected places.

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Featured image: illustration, depositphotos.com

Food courier crisis in Hungary: Labour shortage and opportunities for foreigners with KATA tax revisions

Food courier crisis in Hungary: Labour shortage and opportunities for foreigners with KATA tax revisions

KATA tax reforms have reshaped Budapest’s food delivery landscape, cutting courier earnings and pushing many to leave or work long, gruelling hours. With couriers stretched thin and new workers entering on reduced pay, service quality has come under scrutiny, raising concerns about consumer protection.

Protecting consumers

G7 reports that the Ministry of National Economy has initiated an intensive consumer protection audit of the food delivery sector following a surge in customer complaints. The investigation will examine issues such as food quality upon delivery, delays, service charge structures, and compensation options for affected consumers. This scrutiny is significant as it may reveal the impact of recent policy changes, like the reformed small business flat tax (or KATA tax) and the rise in guest workers, on the sector. Additionally, it highlights the challenges of defining and enforcing consumer protection standards for platform providers like Foodora and Wolt.

Foodora Hungary
Photo: Foodora HU

What influences the quality?

Food delivery quality is influenced by three separate players: the restaurant, the courier, and the platform company connecting the two. Each operates independently, meaning that restaurants may occasionally miss delivery deadlines due to sector-wide labour shortages, though they rarely send orders cold. Couriers, motivated by earnings, generally work quickly but can face challenges en route that impact quality, such as spills or wet bags. The platform company, meanwhile, provides the technology that manages the customer-restaurant-courier relationship through algorithms, though this becomes harder as demand rises.

A significant factor in the sector is the lack of a formal employer-employee relationship between couriers and platform companies, which complicates scheduling to meet fluctuating demand. Recent KATA tax changes and persistent courier shortages in Budapest have further impacted the market, limiting the ability to adapt working hours to high-demand periods. As a result, delays are more likely in bad weather, when demand surges and courier availability drops, while favourable weather can reduce couriers’ hourly earnings due to fewer orders.

Food courier crisis in Hungary: Labour shortage and opportunities for foreigners with KATA tax revisions
Photo: depositphotos.com

KATA tax changes bear negative effects

The 2022 amendment to the KATA tax rules has significantly lowered the potential income for food delivery couriers, prompting many to leave the sector or work extended hours without limits as independent contractors. New couriers, often guest workers or individuals supplementing primary jobs, face this reduced income level, which may lead to fatigue, mistakes, and lower service quality. Unlike cities like Vienna, where couriers can be full-time or part-time employees with consumer protection benefits, Budapest’s platform-based model limits organisation and accountability, as platform companies coordinate legally independent contractors. The ongoing government inspection may ultimately target platform companies, yet regulatory challenges remain, as these digitalised models operate with minimal consumer protection across sectors globally.

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Featured image: depositphotos.com

Attention! Orbán cabinet introduces stricter rules on guest worker employment – UPDATE: foreign workers’ nr

guest worker workers guest workers in Hungary Orbán cabinet

The new measures the Orbán cabinet introduces would like to help the employment of the Hungarian workforce in Hungary. For example, employers in Hungary can no longer hire guest workers from third countries if authorities prove that they refused to give a job to Hungarian job seekers due to unsupported claims. The new measure’s aim is to baulk favouring guest worker employment in Hungary.

A guest worker can only be employed if suitable Hungarian job seekers do not apply for the job

According to Szabad Európa, the new rules were published in a government decree dealing with several other issues. There are three key tightenings concerning third-country job seekers and their employers in Hungary.

First, employers punished with administrative or OSHA fines in the previous 12 months cannot hire a guest worker. Secondly, they cannot hire a guest worker from a third country if they were punished for illegally employing guest workers before. Finally, employers under compulsory liquidation, and forced strike-off cannot hire a guest worker.

Hungary"s population Hungary guest workers government ban golden visa guest workers in Hungary
Photo: depositphotos.com

If a Hungarian employer rejects to hire a Hungarian job seeker because of unsupported claims, they should expect sanctions.

UPDATE: Almost 130 thousand third country foreign workers in Hungary

Guest workers may only fill positions in Hungary that can’t be taken by Hungarians, Minister of Foreign Affairs and Trade Péter Szijjártó said at a hearing before a parliamentary committee on Thursday. Szijjártó dismissed suggestions that guest workers were taking jobs away from Hungarians at the hearing before the foreign affairs committee, his ministry said. He noted that there were 128,000 workers from countries outside of the European Union in Hungary at present, while the number of unfilled positions stood at 71,000.

He added that investments were only eligible for state support if a majority of Hungarians were employed in their implementation or attempts had been made to hire locals for all available positions. Szijjártó said guest workers accounted for just 2.6pc of the employed in Hungary, under the rates of 3.8pc in Slovakia, 6.4pc in Poland and 17pc in Czechia. Addressing other questions, he said the government’s economic strategy was not based “solely” on battery manufacturing investments, but added that the electromobility transition was necessary to meet environmental targets.

Hungary has the fourth-largest battery manufacturing capacity in the world at present and could move into second place after investments in the pipeline are completed, he said.

Government clears new economic policy action plan

Hungary’s government has approved a new economic policy action plan that uses new solutions and new policy tools to adapt to changed circumstances, the National Economy Ministry said on Wednesday.

Adopting a policy of economic neutrality is the only way to ensure Hungary the chance to boost its GDP growth to 3-6pc in 2025, the ministry said. The government aims for the broadest possible participation in the economic upturn, especially for families, microbusinesses and SMEs, it added.

guest worker from india hajdúnánás
PrtScr/ATVnews

The new economic policy aims to increase the purchasing power of working Hungarians, ensure affordable housing and scale up businesses with the launch of the Demján Sándor Programme, the ministry said.

Significant wage rise in cooperation with the employers

Measures affecting incomes include a three-year agreement between employers and unions on minimum wage increases, the launch of a credit scheme for young blue-collar workers, and the doubling—in two steps—of the tax preference for families with children.

Among the affordable housing measures, tighter regulation of short-term rentals, a review of rental rates and contract conditions, and the addition of dormitory rooms are targeted at the capital. Broader measures include the establishment of a home programme for young Hungarians, the launch of a home renovation scheme for smaller settlements, a temporary rule allowing up to half of SZÉP voucher card spending to be used for home renovation, a temporary provision on use of voluntary pension fund savings for home purchase and renovation, tax preferences for employer contributions to home purchases, the extension of the 5pc preferential VAT rate on home purchases until the end of 2026 and a 5pc voluntary cap on mortgage rates with the cooperation of the banking sector.

Measures that aim to double the size of Hungarian SMEs include a capital financing programme, a scheme to promote investments at SMEs, a programme to ensure all businesses have their own homepage, a reduction of the rate on Szechenyi Card credit to 3.5pc, the start of a credit programme by Magyar Eximbank to boost exports, the acceleration of European Union programmes for SMEs and a reduction in administration for SMEs with the raising of the threshold for mandatory auditing.

Restarting growth goal of economic policy, says the Orbán government

Restarting growth is the main goal of the government’s economic policy this year, Richárd Szabados, the state secretary for SMEs, said at a conference on Wednesday. Support for the recovery of household consumption, promoting domestic production and investment, and stepping up labour market activity are pillars of restarting economic growth, Szabados said at the Infoter conference in Balatonfüred. SMEs need to be strengthened to achieve 3-6pc GDP growth in 2025, he added.

He noted that eight of the 21 measures in the government’s new economic policy action plan unveiled earlier on Wednesday affected SMEs. He pointed to the need for more export-capable Hungarian-owned SMEs, noting that just 30,000 of the 900,000 SMEs in the country were exporters and the majority of those were foreign-owned. Touching on the EU’s AI Act, Szabados said the regulations were expected to have a positive impact, but added that their implementation couldn’t involve too much red tape.

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