Expert-Grup

Reform of the State Labour Inspectorate and Its Role in Combating Undeclared and Underdeclared Work

Press releaseFriday, 20 January 20236396 views
Reform of the State Labour Inspectorate and Its Role in Combating Undeclared and Underdeclared Work

Automatically translated summary. The full article is available in Romanian.

The Independent Think Tank “Expert-Grup”, in partnership with the Institute for Strategic Initiatives (IPIS) and with support from the Soros Foundation Moldova, held a press club on Thursday, 19 January. It discussed informal employment, underdeclared work in Moldova and why reforming the State Labour Inspectorate matters.

Corina Ajder, State Secretary at the Ministry of Labour and Social Protection, said the reform will give the State Labour Inspectorate effective levers against informal work. She described the goal as a modern, efficient, business-friendly inspectorate, based on analysis, well equipped and attractive to young people who might stay in Moldova.

According to the National Bureau of Statistics, 192,000 people held informal jobs in 2021, about 22.8% of the employed population. Envelope wages are perceived to account for around 30% of the payroll, and lost public revenue exceeds 7% of GDP. Stas Madan of Expert-Grup argued that the reform should also change firms’ behaviour by altering the costs tied to business risk, since envelope wages are often a conscious, calculated choice given the very low cost of non-compliance.

View the original article in Romanian