Professional bodies representing guest worker employment have submitted a comprehensive reform proposal to the government, arguing that Hungary’s current regime is overly complex and in need of simplification. The roundtable—comprising HR specialists, legal and immigration experts, and employer groups—calls for a more transparent and streamlined system.
Ban in force since 6 June
Prime Minister Péter Magyar made clear during the parliamentary campaign that he intended to place the Hungarian economy on an entirely new footing, prioritising high value-added activity. In line with this, he signalled a shift away from reliance on guest workers towards mobilising domestic labour reserves. From 6 June, his government effectively halted the arrival of new guest workers.
As previously reported, the measure does not amount to a blanket ban. Since that date, no new residence permits for guest workers can be issued, meaning the highly profitable intermediary agencies are no longer able to bring in foreign labour. However, employment-purpose permits remain available to third-country nationals. In practice, this allows, for example, Chinese-owned factories to continue recruiting workers directly from China under their own arrangements.
Previously issued permits remain valid, meaning those already authorised to work in Hungary for one or two years are not required to leave immediately. Accordingly, available data suggest that around 100,000 guest workers remain in the country, including some 20,000 from Serbia and Ukraine, alongside large numbers from the Philippines and other Southeast Asian states.
Calls for structural reform
Industry groups argue that piecemeal amendments will not suffice, and that a full structural overhaul of the guest worker system is required. According to hrportal.hu, the current framework—introduced by the Orbán government in 2024 and amended several times since—relies on nearly twenty different permit types, along with numerous exemptions and country lists, creating significant uncertainty for both employers and authorities.
A central plank of the proposed reform is the introduction of a single, general-purpose residence permit for employment. This would be transparent and subject to an individual labour market test in each case. Under such a system, third-country nationals would only be granted permits where no suitable Hungarian or EEA candidate is available.
The EU Blue Card would be retained for highly skilled professionals, while seasonal work, employment linked to major investment projects, and intra-company transfers would continue to be treated as distinct categories.
Competitiveness concerns
The roundtable maintains that what is needed is not incremental adjustment but a simpler, clearer system more closely aligned with EU rules. At the same time, the proposal would not amount to an unrestricted opening to guest workers.
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In their view, the current regulatory framework is undermining Hungary’s competitiveness, particularly in attracting highly skilled labour. Meanwhile, the transposition of EU legislation has become increasingly urgent: the deadline for implementing the new Single Permit Directive ((EU) 2024/1233) expired on 21 May 2026, exposing Hungary to the risk of further infringement proceedings.
The proposal has been submitted to the Tisza government, with participants urging broader consultations.
Labour shortages unresolved
The government has previously argued that a domestic labour reserve of 300,000 to 400,000 people could offset the loss of guest workers. Experts, however, caution that this is only partially feasible—and not in the short term—without substantial retraining and targeted programmes.
Business groups, for their part, estimate that Hungary would require between 30,000 and 40,000 guest workers annually, underscoring the growing tension between economic demand and political direction.
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