The payment of salaries ‘in envelope’ continues to cause damage to the national public budget, while the fiscal losses generated by undeclared labor are on the rise. Such a conclusion was formulated in the April 26 meeting of the commission for collective consultations and negotiations, IPN reports.

The commission members, social dialogue partners on behalf of the Government, Parliament and trade unions, considered measures to prevent and fight the payment of salaries in envelope in 2015. These measures were approved by a Government decision of June 27, 2011.

Dumitru Stavila, director of the State Labor Inspectorate, said the rise in the minimum guaranteed subsistence level in the real economy from 1,650 lei to 1,900 lei in 2015 had a beneficial impact on the reduction of this phenomenon. Thus, the amount of contributions paid into the state social insurance budget and health insurance funds also increased.

“The amount increased and will yet increase, but nothing will change if the employees tolerate the payment of salaries in envelope. Great information work was done. There were distributed advertisements and printed written materials (40,000 copies) and brochures, including the International Labor Organization’s appeal about the damage caused by the payment of salaries in envelope, first of all to the people, but this information was probably insufficient,” stated Stavila.

Deputy head of the National Trade Unions Confederate Sergiu Sainciuc said there is now an anomaly as the salary in the real sector of the economy is lower than that paid in budget-funded institutions. According to the National Bureau of Statistics, the difference is of 807 lei. If things go on like this, the sum of 1.224 billion lei transferred from the state budget to the state social insurance budget for paying pensions will grow even more.

Chairman of the National Employers Confederation Leonid Cerescu said the payment of salaries in envelope does great damage. On the other hand, the contributions paid to the state represent over 50% of a company’s salary fund. “This fund should be ‘unchained’ as it becomes dependent on the state, which has to cover many costs. Besides, the businesspeople need fiscal stability. New taxes or rises should not be introduced overnight,” he stated.

“Regretfully, the measures stipulated in the Government decision of 2011 didn’t produce the expected results despite the made effort. Other measures, possibly revolutionary ones, are needed,” stated Deputy Prime Minister and Minister of Economy Octavian Calmac, who heads the commission.

Among the formulated proposals are drafting a long-term strategy for preventing and fighting undeclared labor and salaries in envelope and increasing the fines provided in the Contravention Code for the illegal payment of salaries and illegal employment. These and other measures are to be discussed additionally.

According to independent experts, the undeclared labor and payment of salaries in envelope each year cause damage of about 5 billion lei to the national public budget.