The informal economy
ILO to aid Moldova’s transition to the formal economy
The International Labour Organization (ILO) launches an awareness raising campaign on the informal economy and undeclared work in Moldova.
CHIȘINĂU (ILO News) – The ILO is to assist the Moldovan Government and social partners in promoting the formalization of informal employment and reducing undeclared work through a new campaign launched today.
The campaign aims to address undeclared work and the underreporting of wages to avoid tax and social security contributions, in line with ILO recommendations on social protection floors and transitioning to the formal economy.
Moldova has committed to tackle the informal economy through the implementation of a National Action Plan, adopted in 2011.
Three key messages have been adopted to support changes in behavior and attitude towards informal labour, namely: “I contribute, therefore I benefit from social security”; “Ask for your labour contract”; and “Say NO to envelope wages”.
Iurie Crăciuneac, acting Deputy Minister of Labour, Social Protection and Family, welcomed the ILO’s involvement. “The current situation imposes on all of us: government, employers, trade unions, businesses and Moldovan partners to identify and take effective measures to formalize the informal economy. In this context the ILO's campaign is very welcome and necessary for correct information on the rights of individuals but also the benefits of employment in a formal setting,” Crăciuneac said.
The informal economy and undeclared work are major problems for the labour market and social security system in the Republic of Moldova.
In 2014, a total of 385,500 persons had an informal job as their main job, representing 32.5 % of the employed population in Moldova. The informality is particularly high in the agriculture industry (73.0 %), followed by the trade, hotels and restaurants and construction industries.
A large share of informal jobs is in unskilled occupations. Estimates show that 57% of the employed did not fully declare their salaries and the undeclared wages amounted to 9.3 billion Moldovan Leu (MDL) or 45% of the total payroll in 2010.
The campaign will broadcast video and radio clips daily from 18 January until 29 February, as well as using billboard panels and posters in public places, and disseminating leaflets to reach a wide range of people who are currently or potentially involved in informal employment across the country.
The campaign aims to address undeclared work and the underreporting of wages to avoid tax and social security contributions, in line with ILO recommendations on social protection floors and transitioning to the formal economy.
Moldova has committed to tackle the informal economy through the implementation of a National Action Plan, adopted in 2011.
Three key messages have been adopted to support changes in behavior and attitude towards informal labour, namely: “I contribute, therefore I benefit from social security”; “Ask for your labour contract”; and “Say NO to envelope wages”.
Iurie Crăciuneac, acting Deputy Minister of Labour, Social Protection and Family, welcomed the ILO’s involvement. “The current situation imposes on all of us: government, employers, trade unions, businesses and Moldovan partners to identify and take effective measures to formalize the informal economy. In this context the ILO's campaign is very welcome and necessary for correct information on the rights of individuals but also the benefits of employment in a formal setting,” Crăciuneac said.
The informal economy and undeclared work are major problems for the labour market and social security system in the Republic of Moldova.
In 2014, a total of 385,500 persons had an informal job as their main job, representing 32.5 % of the employed population in Moldova. The informality is particularly high in the agriculture industry (73.0 %), followed by the trade, hotels and restaurants and construction industries.
A large share of informal jobs is in unskilled occupations. Estimates show that 57% of the employed did not fully declare their salaries and the undeclared wages amounted to 9.3 billion Moldovan Leu (MDL) or 45% of the total payroll in 2010.
The campaign will broadcast video and radio clips daily from 18 January until 29 February, as well as using billboard panels and posters in public places, and disseminating leaflets to reach a wide range of people who are currently or potentially involved in informal employment across the country.