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5 important changes in the employment of foreigners

Employers who want to employ foreign colleagues will have to adapt to a number of changes again in 2025. The Aliens Act has been tightened, it is not easy to navigate the maze of different types of cards (permits) and to adapt to the changed expectations. We asked Györgyi Cziczárdi, managing director of Expat-Center and relocation expert, about the regulatory changes, which are also challenging for HR.

The criteria for an employer to employ a third-country national have been further tightened. The government has capped the number of permits that can be issued at 35,000 in 2025, and only from three countries - Armenia, Georgia and the Philippines - are now allowed to bring in guest workers with work permits. The latter restriction mainly affects the larger numbers of mostly manual workers brought in by temporary employment agencies, but those coming in for skilled, managerial and shortage occupations could also see significant changes. However, there are solutions to the current situation, Györgyi Cziczárdi reassures.

Main changes:

1. Raised salary threshold

2. Compulsory Hungarian Cultural Exam

3. Increase in permit fees

4. No possibility to apply for a discretionary decision or a job-seeker's permit in Hungary.

5. Restrictions on the area and number of employment permits (Foglalkoztatási célú engedély)

Raised salary threshold

One example is the EU Blue Card (EU Kék Kártya) for highly qualified professionals. To obtain the card, the worker must have a university degree or a certain period of experience and a work contract with the future employer for at least one year. This type of permit is advantageous because it is valid for 1-4 years, can be extended and allows family members to join. However, the salary limit for the card has been increased: HUF 883,671 in 2025 and HUF 706,937 for certain health care positions, according to a decree of the Ministry of National Economy. "This is generally not a problem for interested employers in managerial or senior specialist positions, but it may be a barrier when employing, for example, young professionals or in the health sector, for example, due to the existing salaryranges, despite the serious labour shortages perceived in the sector," says the relocation specialist.

For expat managers and professionals, the possibility of family reunification - which is possible with the blue card mentioned above - can also be a deciding factor when a worker is deciding whether or not to accept an employer's offer, as several types of permits, such as a work permit (Foglalkoztatási célú engedély), do not qualify.

The other option is the Hungarian Card (Magyar Kártya), which is available to third-country nationals who come to Hungary to work, participate in a company or even hold a managerial position. In addition, the applicant must have professional qualifications as defined by the Minister responsible for higher education. This licence is valid for 3 years and may be extended for the same period.

A third-country national who holds a residence permit, a temporary settlement permit or a temporary residence card can obtain a National Residence Card (Nemzeti Tartózkodási Kártya). This permit is valid for 10 years and renewable for a further 10 years, is not specifically for employment purposes, but can be used to take up work, although there are a number of conditions to be met if you wish to apply for such a card. 

Compulsory examination

A further difficulty is the Hungarian Cultural Knowledge test, which, in the case of the national residence card and the EU residence application, examines whether the candidate fulfils the conditions for social coexistence. The test must be taken by anyone who has not previously passed it. An exception is made for those who have been issued a national residence card in the national interest. The exam is in Hungarian, in writing, in Budapest, for a fee of HUF 20 000 per exam. If you fail the test three times, you will not be allowed to retake it, and will lose your chance of long-term residency in Hungary.

The test will cover topics such as Hungarian national symbols, important historical events and holidays, the basic institutions of the Fundamental Law, citizens' rights and duties, the history of European and Hungarian literature and music, Europe and Hungary in everyday life, etc. All this is to be completed in writing in Hungarian, in 60 minutes, answering 12 questions.

Other changes

Györgyi Cziczárdi also mentioned further changes to the relocation administration. She said that most fees of permits have been increased, and that it costs money to issue an address card for EU citizens.

"It is no longer possible to take into account an application for discretionary decision in Hungary. So companies often find themselves in a difficult situation, because although they would immediately hire a candidate and start the work permit application, the prospective employee has to travel home by law and can only submit his application there. This is often a lot of time and extra cost until the company can fill the vacancy and there is also the risk that the candidate might accept another offer in the meantime. This also means a loss for the company, as it can start the selection process all over again," she says.

A similar difficulty is faced by young people who, after completing their studies in Hungary, who previously could apply for a temporary job-seeker's permit, but who can no longer apply for it locally and have to travel home.

The Expat-Center CEO concluded by summarising that the application process is complex and the conditions are strict, with many factors to be taken into account for each type of permit: qualifications, nationality, salary limits, position and background, but she encouraged employers that by carefully reviewing and understanding the regulations, they can still find a solution to the shortage of skilled foreign workers.

The original article in Hungarian

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