The 55-65 age group is also considered an important labor market reserve

By: Trademagazin Date: 2025. 05. 06. 10:36

Public charges for seasonal and casual employment have increased significantly in Hungary, and from July, further restrictions will make employment under the EFO framework more difficult. But how are employers adapting to the narrowing room for maneuver before the summer season that is about to start? More and more people are turning to flexible and tax-advantaged cooperative employment, which opens up new opportunities not only for students, but also for people aged 55-65 and pensioners. This could create a previously untapped labor reserve on the labor market, which could play a key role in alleviating the labor shortage in the coming years, points out the head of the HumánCentrum Retirement Cooperative.

Rising public charges, decreasing room for manoeuvre for casual and seasonal work

From 1 February 2025, in addition to a significant increase in the daily public charge for seasonal agricultural, tourist and casual work (+69% and +63%), new restrictions will soon come into force. From July, an employee can work a maximum of 120 days a year under simplified employment – regardless of how many different employers he or she works for.

Goodbye EFO!

In parallel with the narrowing of simplified employment opportunities, students and pensioners may increasingly come to the fore. Their employment within the framework of a cooperative offers a flexible, cost-effective, yet legal alternative to the restrictions.

“In this scheme, there are no time limits of 5, 15, 90 or 120 days and there is no limit on the number of employees – meaning that any number of employees can be involved in the work, regardless of the size of the company. The employer pays only for the hours actually worked, without holidays or sick leave. In addition, the administration is minimal, as the HumánCentrum Pensioners’ Cooperative fully takes over the HR and payroll tasks”

– emphasizes Dénes Rajmund, the head of the HumánCentrum Pensioners’ Cooperative.