Undeclared work in Romania amounts to EUR 19.5 bln

The value of undeclared work in Romania amounts to RON 90 billion (EUR 19.5 billion), according to estimates of the Finance Ministry. Romania’s GDP currently amounts to RON 837 billion (EUR 182 billion), reports local Ziarul Financiar. If the undeclared work were done legally, the country’s GDP would earn an extra EUR 19.5 billion. The Finance Ministry considers that by reducing and simplifying the social contributions (CAS) the illegal work could drop by 10% and the budget would earn an additional amount of RON 3 billion (EUR 652 million). The overall social contributions will be reduced from 39.25% of the gross wage to 37.25% starting January 1, 2018, according to the draft project for changing the Fiscal Code. The contributions paid by employees for pension, healthcare and unemployment will amount to 35% of their gross wages, up from 16.5% now. Meanwhile, the contributions paid by employers for their employees will drop from 22.75% of the gross wage to 2.25% of the gross wage. editor@romania-insider.com