SIGNED MEMORANDUM FOR REDUCTION OF THE INFORMAL ECONOMY

Print

2/24/2016

Слика 1. Претседателот на ССМ, д-р Живко Митревски на потпишувањето на меморандумотCaption 1. The President of CCM, PhD Zhivko Mitrevski on the signing of the memorandum

On 24th February 2016 the President of the Federation of Trade Unions of Macedonia, PhD Zhivko Mitrevski together with the representatives of the Organization of Employers of Macedonia, Business Confederation of Macedonia, Confederation of Free Trade Unions of Macedonia and the State Labor Inspectorate, attended the signing of the memorandum on cooperation in the fight against undeclared work.

The purpose of signing of this memorandum is to fight against informal economy through exchange of information and ideas and to raise the awareness on the benefits of declared work.

According to data presented at the signing of the memorandum most common areas in which undeclared workers are present are the sectors: agriculture, construction, transport, hotels and restaurants, trade and services, small and medium enterprises.
According to the statistics, men are slightly more likely to engage in undeclared work than women, most common age group from 15 to 30 years.

The report also comprises the categories students and pensioners, seasonal workers, part-time workers, temporary workers, as well as direct cash payment (wages in envelopes).

Слика 1. Претседателот на ССМ, д-р Живко Митревски на настанотCaption 2. The President of CCM, PhD Zhivko Mitrevski on the event

"The involvement of all social partners in the prevention of undeclared work is of a great importance. This extremely negative phenomenon has implications on the social and economic status of all involved in the process and in the negative fiscal policies of the state"- said President Mitrevski.

The analysis of the size and scope of undeclared work as a percentage of gross domestic product shows that undeclared work in Macedonia ranges between 20 and 35 percent. The data indicates that 11 percent of the working population in Macedonia is engaged in informal employment, and that 22.5 percent of the total number of workers is part of such employment. Various figures, as noted, are often confused and gave a misleading picture.

In 2014 the State Labor Inspectorate, according to data presented, performed 28,215 inspections and recorded 427 undeclared workers. It has submitted 385 requests for misdemeanor proceedings and two criminal charges. The Inspectorate has received 2,193 anonymous requests and 2,193 requests in writing.