Debrecen4U June 9, 2026

Companies May Turn to Alternate Solutions as Government Tightens Guest Worker Rules

Companies may be forced to adopt alternate measures if sufficient labour cannot be secured, according to one of the senior executives of Trenkwalder Hungary. József Nógrádi commented on the government’s decision to prohibit the arrival of new guest workers through a fast-track procedure from the Philippines, Georgia and Armenia.

At BMW Group Plant Debrecen’s recent factory tour for the press, President and Chief Executive Officer Hans-Peter Kemser explained that it is part of BMW’s global operating model for specialists working in plants across different countries to share their expertise with other facilities. He added that, with the production of Neue Klasse models, the Debrecen plant is becoming a key component of BMW’s international network and may therefore continue to require foreign workers in the future.

The government decree restricting the recruitment of guest workers was published on Friday and entered into force immediately, meaning fast-track procedures are no longer available for the entry of workers from the Philippines, Georgia and Armenia. Those already employed in Hungary, however, may continue to apply for extensions to their residence permits. According to the government, foreign nationals may work in Hungary under 24 different legal categories, which means there is no precise data on how many foreign workers are employed in the country or under which arrangements.

“Many of these workers arriving from third countries often have significantly lower wage expectations than Hungarian employees, which can place downward pressure on domestic wages. Naturally, the government’s objective is to prevent this, and it is therefore seeking a long-term solution. The situation is complex, so it is unlikely to be resolved overnight,” government spokesperson Vanda Szondi said.

Speaking recently to Médiacentrum Debrecen about labour market developments, Ferenc Miklóssy, President of the County Chamber of Commerce and Industry said that significant labour shortages are currently being experienced in the food industry, as well as in certain service and tourism sectors. According to him, an increasing number of businesses may require foreign workers as the economy expands, primarily in manual and semi-skilled positions. If this labour force were to disappear from multiple sectors, it could result in declining production and exports, while Hungary currently lacks a substantial reserve of workers that could be mobilised in the short term. “Hungary’s demographic situation unfortunately means that considerably more workers leave the labour market each year than enter it. This challenge is further exacerbated by the number of Hungarians working abroad,” Ferenc Miklóssy previously told Dehir. According to the chamber president, industrial investments and developments in Debrecen and the wider county will continue to increase demand for labour, while digitalisation, automation and robotics are significantly transforming employment structures.

Commenting on the expected labour market impact of the government’s decision, József Nógrádi, Director of Strategic Relations at Trenkwalder, noted that the employment of guest workers has always been subject to strict regulation, including the requirement that they receive the same pay as Hungarian workers performing the same role. “It is a fundamental principle that a foreign employee cannot earn less than a Hungarian employee working in the same position. This rule is designed to protect Hungarian jobs and ensure fair wages,” he said, adding that companies generally operate within tight cost structures, meaning that there is often limited scope for significant wage increases, as these would substantially affect production costs. “In such circumstances, companies may introduce alternative measures, such as reducing production volumes, increasing automation, employing fewer workers, or, in the worst-case scenario, relocating operations to another country where more cost-effective alternatives are available,” József Nógrádi said.

The labour market expert explained that under previous regulations, the annual number of guest workers permitted to enter Hungary was capped at 35,000. Relative to the size of the overall Hungarian labour market, this represents only around one per cent, which is considered low by European standards and particularly restrained when compared with the other V4 countries (Slovakia, Czechia, and Poland). “At the same time, for key positions requiring specialised expertise, it is essential that suitably qualified domestic workers are available. If we intend to replace foreign employees in these roles, we must also provide an alternative by ensuring that the Hungarian labour market can supply professionals capable of filling these positions,” he pointed out.

József Nógrádi also stated that greater emphasis could have been placed earlier on recruiting domestic workers, thereby providing a stronger alternative for employers. Further amendments to the regulations are expected in the future, although details have not yet been made public. He added that another measure protecting domestic workers is the rule that companies making significant redundancies among Hungarian employees may not automatically replace them with foreign labour. Foreign workers may only be employed if the relevant vacancies have first been advertised to Hungarian jobseekers. Compliance with this requirement is already monitored by the authorities. “To address labour shortages, many companies are increasingly moving towards automation and robotics, as these offer a more stable and predictable operating model in the long term,” József Nógrádi emphasised.

Source: dehir.hu | Photo credit: Pixabay