The National Confederation of Trade Unions proposes toughening up the penalties imposed on employers that pay salaries illegally. The trade unions believe that the employees who accept such practices should be also punished, Info-Prim Neo reports. “We ask the Government to toughen up the penalties. We also suggest a plan of action for minimizing the practice of paying salaries ‘in envelope’ and the illegal labor by toughening up the penalties both for the employer and employee. We plan a series of activities to inform the people so that they realize the problem and do not tolerate it,” the chairman of the National Confederation of Trade Unions Oleg Budza said in a working meeting that involved representatives of employers and the Ministry of Labor, Social Protection and Family. According to Oleg Budza, the illegal labor weakens the country’s economy and strengthens the underground economy, which represents 40% of the formal one. The head of the National Employers Confederation Leonid Cerescu said that this phenomenon is influenced by the too high taxes. “We must create loyal conditions for all the economic entities so that they do not look for different methods to avoid paying taxes and to pay salaries illegally,” he stated. Deputy Minister of Labor, Social Protection and Family Sergiu Sainciuc believes that the current penalties are too mild. The fine is 1 000 lei and if it is paid within 72 hours it is halved. “The given problem affects the salary system. The state budget annually suffers losses of about 4.7 billion lei. According to preliminary data, about 360,000 persons in Moldova have an informal job, while 48% of the population did not declare the incomes,” he stated. State General Labor Inspector Dumitru Stavila said that the Labor Inspectorate will not manage to investigate all the cases if the employees do not cooperate. The employees should understand that if they accept pays ‘in envelope’, when they are sick or become pensioners they will receive a small allowance that will not cover their costs. The plan of action for combating illegal labor envisions including a new article in the Labor Code, which will provide penalties for illegal labor for the employer and employees.