Both employers and employees will be fined for informal pays
The Cabinet has approved a plan to reduce informal employment, which provides, among other, increasing fines for employers, but also for employees who accept so-called 'envelope wages', Info-Prim Neo reports.
The fines imposed on employers will range from 300 to 500 conventional units for each employee receiving informal pays.
The plan also provides improving the recording of employment relations, intensifying control to discover tax evasion schemes and combat informal employment, and promoting legal education among employees.
Other provisions include introducing the notion of average sectoral salary per time unit worked, which will be mandatory across sectors, and increasing the size of the guaranteed minimal annual salary in the real sector.
Also, the plan provides that private sector enterprises with under 20 employees will be required to register individual employment contracts with territorial employment agencies, district offices or mayor's offices. In the case of enterprises with under 50 employees, staff will be required to be registered with territorial labor inspectorates.
According to statistics, in 2010, the informal sector accounted for 14.7% of the total employees. The highest rates of informal employment is registered in constructions, agriculture and the hospitality industry.