Key Points
- Hungary’s new employment regulations for third-country nationals take effect on January 1, 2025.
- A residence permit is required for employment or guest worker purposes.
- The regulation applies to nationals from countries with readmission agreements, currently Georgia and Armenia.
- Nationals from other countries can still work if their home country has an organization in Hungary ensuring compliance.
- The annual quota for residence permits for employment purposes is capped at 35,000.
- The new regulations aim to address labor shortages in Hungary.
Overview
Effective January 1, 2025, Hungary has implemented new regulations governing the employment of third-country nationals. These updated rules aim to streamline labor migration and address workforce shortages by setting clear conditions for foreign nationals seeking employment or guest worker roles in Hungary.
The new regulations require that third-country nationals obtain a valid residence permit for employment or guest worker purposes. This requirement applies specifically to nationals from countries with readmission agreements with Hungary—currently limited to Georgia and Armenia. For nationals from countries without such agreements, employment is still possible if their home country has an official organization in Hungary responsible for ensuring compliance and facilitating the return of workers who fail to meet their obligations.
To manage the inflow of foreign workers, the decree sets a maximum annual quota of 35,000 residence permits for 2025. This quota encompasses both employment and guest worker permits. The policy reflects Hungary’s strategic approach to balancing the need for foreign labor with national workforce management. The government aims to fill critical labor gaps while ensuring that employment regulations are adhered to and that workers maintain legal compliance throughout their stay.
Introducing a quota system and emphasizing readmission agreements highlight Hungary’s focus on promoting regulated labor migration while maintaining flexibility for industries facing staffing shortages. The regulations also signal a structured approach to collaborating with partner countries and ensuring that foreign workers contribute to the economy without overstaying or falling out of legal status.
Looking Ahead
Employers in Hungary should be aware of the new regulations and plan their workforce strategies accordingly. Companies that rely on third-country nationals must ensure that their foreign hires have the necessary residence permits and comply with the updated requirements. Additionally, businesses should monitor the annual quota closely, as reaching the limit may impact hiring timelines and workforce availability.
Foreign nationals planning to work in Hungary should verify whether their home country has a readmission agreement or an official organization operating in Hungary to support compliance. Early preparation of documentation and timely submission of permit applications will be crucial to avoid delays or complications under the new system.
These employment regulations may prompt bilateral negotiations with additional countries to establish more readmission agreements, potentially expanding the pool of eligible guest workers. Employers and foreign workers should stay informed about future updates that could affect eligibility or permit availability.
Hungary’s updated policy reflects its commitment to addressing labor market needs while maintaining a structured and secure framework for foreign employment. This approach is likely to play a key role in the country’s economic development and its ability to attract skilled and compliant workers from third countries.
