From Jan. 1, simplified employment, known as EFO, has been operating under new rules that introduce a combined annual cap of 120 working days per employee, calculated across all employers. The changes come as seasonal job opportunities are expected to rise sharply from March in industries such as retail, tourism and hospitality, construction, logistics and event management.
Simplified employment has long provided a flexible solution for occasional and seasonal jobs, particularly in sectors with fluctuating labor demand. However, the new rules impose tighter restrictions, including higher daily public charges and stricter limits on working time.
Under the revised regulation, casual workers may be employed for a maximum of five consecutive calendar days, 15 days within a single month and 120 days within a calendar year. The annual limit applies per employee and includes days worked for multiple employers.
In practice, this means workers who take several short-term jobs at different companies may reach the annual limit earlier than expected, potentially interrupting employment during peak seasons.
Agricultural seasonal work now has a separate annual limit of 210 days, but higher public charges apply for periods exceeding 120 days. However, if a worker combines agricultural seasonal work with other casual employment, the overall 120-day limit still applies.
“It is important to know that if an employee performs even a few days of casual work alongside agricultural seasonal work, meaning they mix the two types, the combined 120-day limit becomes applicable. Because of the legal cap, employment can easily be interrupted during the year, which may particularly affect those who previously supplemented their income through several different types of casual jobs,” warns Róbert Göbl, head of the HR services group Humán Centrum.
The tighter limits are expected to require more careful workforce planning, particularly for those seeking to retain the same staff over longer periods. Companies must also meet strict daily reporting requirements, and missed or delayed administrative submissions can resultin significant penalties.
Göbl said the new framework could lead employers to offer shorter contracts and rely more heavily on workforce rotation.
“This may, in many cases, lead employers to contract for shorter periods, and turnover in casual jobs under simplified employment may become more frequent, increasing recruitment and training costs. From the employees’ perspective, this may also mean greater uncertainty,” he added.
As a result of the changes, companies may increasingly turn to alternative employment models, particularly hiring students and pensioners through cooperatives.
“Employers increasingly recognize that it is not worth employing workers under simplified employment if the given task can also be performed by students or pensioners,” Göbl explained.
Under the cooperative model, workers’ gross wages are not subject to the 18.5% social security contribution, and employers are exempt from the 13% social contribution tax. Unlike simplified employment, the cooperative system does not impose strict daily or annual time limits, and most administrative and payroll tasks are typically handled by the cooperative.
More than 150,000 students take on work annually. A similar trend is visible among older workers. According to data from the Central Statistical Office and pensioner cooperatives, nearly 158,000 retirees work in some capacity nationwide, with a growing number doing so through cooperative arrangements.
This article was first published in the Budapest Business Journal print issue of March 13, 2026.
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