President claims that undeclared work stagnates the development of the country

“Citizens’ undeclared work means for the state a loss of tax revenue, which affects them and the development of the country.” Such a statement was made today, November 4, by the president of the country, Maia Sandu, who participated in the international conference “Moldova goes white: Solutions to encourage the transition to legal work”.

The Head of State states that, according to statistical data, in 2021 there were more than 200 thousand citizens, who worked “on the black”, most of them being employed in agricultural work, construction, or in trade.

“Pensioners come who complain that they have a small pension because they did not contribute to the social insurance fund for a certain number of years they worked. Then they were happy to earn an income. Now they have obviously realized that black work is a big bummer when you reach retirement age. Unfortunately, it is too late for them to solve this problem. But for many others, and according to statistical data, that means at least 1 in 5 employed people, today is the right time to solve this problem together, so that they do not end up in the same situation later. According to the data from the National Bureau of Statistics, in 2021 we had almost 200,000 people who are in this category. A figure too high for our country. Most of them work in agriculture, construction, and trade, but they are also employed in other fields,” said Sandu.

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The president specified that combating informal work must be a joint effort of the state, employers, and citizens.

“The negative effects of undeclared work are multiple and are felt by employees, employers, and the state. In addition to the problem of workers’ pensions, undeclared work also means little or no access to health care and the right to parental leave. It also means poor working conditions, and sometimes it also means violation of labor rights. For the business environment, for the economic sector, undeclared work means unfair competition. Those who employ illegally do not pay taxes and are therefore at an advantage over those who do things legally. These serious economic costs are an injustice to those operating on a level playing field. For the state, undeclared work means the loss of tax revenues, which also affects citizens, all citizens, and the development of the country,” said Sandu.

We specify that the Ministry of Labor and Social Protection, jointly with other authorities, organized a conference, through which they want to combat “black” work.

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