Many guest workers leave Hungary to work in other countries, prompting PM Orbán to introduce stricter measures

Hungary is among the European nations welcoming the highest number of guest workers each year. However, the majority of these individuals do not intend to remain in Hungary. Instead, they view their arrival in Hungary as a stepping stone towards obtaining higher salaries in other Schengen Zone countries. For this reason, Prime Minister Orbán and his cabinet have introduced stricter rules and reduced the number of guest workers permitted to enter Hungary, excluding several nations from the programme.

Hungary serves merely as the first milestone

“There are many illegal migrants. Hungary is like Mexico, from where migrants travel to the USA. They come here with visas and then leave to work in Poland or other European countries,” a guest worker in Hungary, Aszlan Szamugyinov, told Szabad Európa in December. Gábor Hideg, CEO of Villeroy & Boch, told Telex in 2023 that they could not even meet their Vietnamese workers because these workers travelled to Germany immediately after landing at Budapest Airport.

Government restrictions

According to G7, the increasing number of foreign workers leaving Hungary to work elsewhere is the primary reason behind the government’s newly introduced restrictions. As previously reported, the Orbán cabinet reduced the permitted number of guest workers to 35,000, down from 65,000, despite the number of vacant positions remaining unchanged. Additionally, the government excluded countries such as Vietnam, India, China, South Korea, Mongolia, and Kyrgyzstan from the programme. From 2025, only guest workers from countries that have signed repatriation agreements with Hungary will be eligible for employment.

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Guest workers from India. They will no longer be eligible for the program. PrtScr/ATVnews

.The first restriction introduced in March 2024 empowered authorities to fine employers whose guest workers failed to leave Hungary within eight days of their permit’s expiration. These fines can amount to millions of forints.

A study by the Periféria Központ (Periféria Policy and Research Centre) revealed that the number of guest workers leaving Hungary to seek higher wages elsewhere has grown. Although their work permits are valid only in Hungary, their residence permits allow them to move freely within the Schengen Zone.

Many guest workers leave due to low salaries and lack of overtime work

Some recruitment agencies specialising in guest worker headhunting offer much better opportunities than those available in Hungary. In some cases, guest workers hide from authorities within their ethnic communities. According to the study, Ukrainian, Vietnamese, and Filipino guest workers are particularly prone to this. In 2023, for example, 2,000 Filipino guest workers chose to leave Hungary. Among Vietnamese workers, the departure rate is astonishingly high, at approximately 80%. This trend led some Hungarian HR companies to cease recruitment efforts in Vietnam well before the government excluded the country from the programme.

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Source: depositphotos.com

The study attributes these departures to low salaries, worsening working conditions, and poor workplace communication. Additionally, due to the declining strength of Hungarian industry, guest workers in Hungary face fewer opportunities for overtime work.

Repatriation to become easier

Company executives have expressed hope for improved communication between the authorities of different countries following the new guest worker regulations. As a result, guest workers who fail to comply with Hungarian regulations may face consequences in their home countries. There have been multiple instances of early contract terminations, as Hungary’s struggling economy has led to layoffs. Many dismissed guest workers have opted to remain within the Schengen Zone rather than returning home.

The study indicates that the number of guest worker permits issued has increased in Hungary, Croatia, Lithuania, Romania, and Bulgaria in recent years. Hungary competes with Italy, Czechia, and Poland to retain its foreign workforce. Notably, Hungary is the third most popular destination for Filipino workers after Italy and Malta. For Vietnamese workers, Hungary ranks as the second most popular destination.

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  • This is why guest workers are essential for Hungary’s economy

Featured image: deposithotos.com