Undeclared workforce on the decline

Scanpix
6/10/2015 1:57 PM
Category: Economy

The Tax and Customs Board have launched a two-week campaign on under the table cash salaries to thank those who have begun to pay income and social tax on their salaries.

According to the Institute of Economic Research, around 7 percent of all workers did not pay tax in 2014, down from 11 percent a year earlier. That means 20,000 people, who had not previously paid social tax, did so for the first time last year.

The main reason for the drop lies in the staff register, which forces businesses to register any new staff on the first day of work. Previously companies had a few weeks to register new workers, meaning raids by the Tax Board often found people who had began work a few days ago and had not yet been made official.

According to the institute, the state still loses between 90-100 million euros in tax from under the table salaries every year.

J.M. Laats

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