Hungary: Reduction in Quota for Employment Permit

Hungary has announced a major reduction in its quota for issuing employment-related residence permits, including guest worker permits, as part of a broader effort to protect domestic jobs and stabilize the local labor market. The new combined quota is now 35,000, down from 65,000.

This significant policy change will affect businesses relying on foreign talent, forcing them to reassess their workforce planning and talent acquisition strategies. Here’s what employers and foreign workers need to know about the impact of Hungary’s new employment permit rules.

What is the New Quota for Employment Permits in Hungary?

Effective immediately, Hungary has reduced its combined quota for issuing:

• 🔸Residence permits for employment purposes
• 🔸Residence permits for guest workers

The new quota is 35,000 permits, a 46% reduction from the previous cap of 65,000 permits.

What Should Businesses Do Now?

Businesses impacted by Hungary’s quota reduction should take immediate steps to adjust their talent management strategies:

1. Secure Permits Early

Employers should act quickly to secure permits within the limited quota. Early applications will increase the likelihood of successful approvals.

2. Reassess Recruitment Strategies

Companies should consider shifting recruitment efforts toward local talent. Investing in training and upskilling domestic workers could help bridge skills gaps.

3. Explore Alternative Talent Markets

Businesses may need to relocate roles or explore hiring from other EU countries with more favorable work permit policies.

4. Seek Legal and Immigration Assistance

Navigating immigration policy changes can be complex. Employers should consider seeking expert legal advice to ensure compliance with Hungary’s new permit rules.

Conclusion

Hungary’s decision to reduce its quota for employment and guest worker permits will significantly impact employers and foreign workers alike. Businesses must act swiftly to secure permits and adjust their recruitment strategies to mitigate the impact of staff shortages and project delays.