Background information

In response to a labour shortage from 2017 the government started to facilitate the recruitment of third country (non-EU) workers from 15 countries, followed by a special permit for Ukraine and Serbia nationals from 2022. In June 2023 it passed Act L/2023 on the employment of guest workers in Hungary, only to withdraw it before it could come into force in November 2023. Instead came an immigration law (Act XC/2023) which contains general rules about workers from third countries entering and staying in Hungary, but also deals with “guest foreigners”, who are to provide labour for investments for extensive growth.

Content of measure

Guest workers can only be employed by registered employers or registered and selected recruitment agencies. They can stay no longer than three years (2 years plus one extension) for a specific investment project. The employer who provides accommodation to the guest workers in a separated area from local residents will be preferred for the project (Article 26). It is the employer’s responsibility that the guest worker leaves the country within six days of their work permit expiry date (there is a fine of HUF 5 million (€12,500) unless the employer can prove acting in good faith). The withdrawal of the first Act signalled rushed planning, as legislators balanced having strict rules, aligned with the government’s anti-immigration stance, while ensuring needed workforce. Restrictions followed: a quota was introduced, then cut in half effective 2025, while the scope of source countries was narrowed from 15 to 10 as of July 2024 (Hárs, 2025, Govt decree 180/2024).

Use of measure

At the end of 2023, the number of foreign (guest) workers was estimated at 120,000-140,000 (about 3% of total workforce) including about 45,000 workers with special permits for Ukraine and Serbia. In addition to this group there was also "regular" or self-generated immigration, and among them, the number of employed third-country nationals doubled, but reached only about 58,000 in 2023. These numbers together point to a slight increase in foreign workers only, which stays below 5% of the workforce, a low rate in the EU. (Hárs, 2024 and 2025)

Target groups

Workers	Businesses	Citizens
Migrants or refugees in employment	Other businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Company / Companies	No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Consulted
Form	Not applicable	Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

Employers’ organisation MGYOSZ acknowledged knowledge of a a guest worker draft law in the making, but was surprised whenthe law proposal appeared and was quickly withdrawn. Later MGYOSZ said in a report dated May 2024 that it had been negotiating the details of the guest worker law amendments within the Permanent Consultation Forum of the Private Sector and the Government (VKF), and warned against hasty restrictions to follow.

Views and reactions

Industry-related trade union VDSZ said it would coordinate with trade unions from sending countries to organise the migrant workers in Hungary, in order to smooth friction between Hungarian and foreign workers at the same time warning that even the withdrawn law (thought to be too lenient) induced vulnerability and lacked protections for housing and integration of guest workers (merce.hu). During a strike at the Autoliv car parts factory the Vasas trade union tried to organise guest workers who wanted to join the strike but were afraid of deportation, merce.hu reported. In light of the changes in 2026 the National Association of Entrepreneurs and Employers (VOSZ) said it agreed that it was necessary to review the rules of employing guest workers, but instead of a complete ban a targeted limitation would be desirable, as fast changes would cause disruptions in the economy. VOSZ also said real ways of re-integrating the reserve workforce should be sought. The VDSZ leader said in response to the 2026 guest worker law that it seemed the ban did not apply to everyone, it does not affect Chinese and South Korean companies, like battery factories.

Sources

• 05 October 2023: Kiss, S. Á. Government withdraws guest worker law (merce.hu)
• 09 October 2023: Karácsony Z. Why did the government withdraw the guest worker law? (www.hrportal.hu)
• 01 November 2023: Act L/2023 on guest workers (withdrawn) (njt.hu)
• 01 January 2024: Hárs, Á. Migration, labour shortage, guest workers (doi.org)
• 01 January 2024: Act XC of 2023 on immigration (njt.hu)
• 15 May 2024: MGYOSZ report May 2024 (www.mgyosz.hu)
• 09 July 2024: Govt decree 180/2024 on guest-worker sending countries (njt.hu)
• 23 December 2024: OIF information on guest worker permits (undated) (oif.gov.hu)
• 24 December 2024: Ministry statement on guest workers (mti.hu)
• 01 January 2025: Hárs, Á. Many or few? Guest worker recruitment in Hungary (doi.org)
• 01 January 2025: Govt decree 450/2024 on employment of guest workers (njt.hu)
• 15 January 2025: Stubnya, B. Government only pretends to shut door on guest workers (g7.hu)
• 18 April 2025: Lehoczki N. Guest workers can be organised but important how (merce.hu)
• 19 May 2026: Guest worker law reactions from EOs (adozona.hu)
• 05 June 2026: Govt decree 450/2024 amended 5 June 2026 (njt.jog.gov.hu)
• 05 June 2026: Merce-New guest worker law mixed bag (merce.hu)
• 10 June 2026: VDSZ-Chinese factories not affected by guest worker law (www.szeretlekmagyarorszag.hu)