The government is set to increase penalties for undeclared work to combat the widespread issue.
Two related bills, which aim to double fines for employers who employ workers without registering them with the Social Security Services, are expected to be voted on by the House of Representatives Plenary Session on Thursday, October 24.
The bills, which have been supported by the Labour Committee, will also introduce electronic census of all workers in the country through the Ergani system. This will require employers to update the system with information on their employees and their employment terms.
The Minister of Labour, Yiannis Panayiotou, has emphasised the negative consequences of undeclared work, which undermines workers’ rights, fair competition, and social funds. He noted that the horizontal percentage of undeclared work in Cyprus is around 13%, although it varies across different sectors.
The increased fines are expected to act as a deterrent for employers, making it less financially attractive to avoid registering employees.
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