The number of employees could increase by up to 30%, reaching 7.44 million, by integrating workers from the undeclared economy, which would contribute to reducing underemployment of the labour force and to reducing the excessive impact of taxes on labour, shows a study presented by the National Trade Union Bloc (BNS).
The National Trade Union Bloc launched, on Tuesday, at a debate that brought together representatives of trade unions, employers, as well as the Government and state institutions, the study "Economic Dependency. Criteria for Identifying the Legal Employment Relationship. When Dependent Workers Become Subjects of Labour Law."
According to the research, if one million people working in undeclared work were to enter the tax system, an additional 18.7 billion RON would be recorded in the annual state budget, which would allow a cut in social contributions, with positive effects on the economy.
The study highlights that the general tax burden on labour, which is high and affects low salaries in particular, is a factor that encourages undeclared work. Also, distortions in the tax system, such as the additional deduction of 300 RON, can generate significant inequities.
A major challenge for Romania, according to those present, is the definition of a "high wage income," given the clustering of low salaries and distortions on the labour market.
Finally, the study suggests that tax alternatives to individual employment contracts are often more favourable, which requires a reassessment of the taxation system to support a fairer and more efficient labour market, it is mentioned in a press release posted on the NBS Facebook page.
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