Eurobarometer: 7% of Romanian employees are paid “in the envelope”

Romania has a high percentage of employees paid cash in hand, of 7 percent, higher than the EU average of 3 percent, according to a Eurobarometer survey.

Around one in ten Europeans (11 percent) admits that they have bought goods or services involving undeclared work in the previous year, while 4 percent concede that they have themselves received undeclared pay in return for work. Furthermore, one in 30 (3 percent) was paid partly in cash by his or her employer (“envelope wages”).

These are some of the findings of a Eurobarometer survey which shows that undeclared work continues to be widespread in Europe, though the extent and perception of the problem vary from country to country.

The Eurobarometer survey, carried out in 28 EU countries, shows that:

1. 11 percent of respondents admit that they have bought goods or services involving undeclared work in the previous year, while 4 percent admit to have carried out undeclared paid activities
2. 60 percent indicate lower prices as the main reason for purchasing undeclared goods or services, and 22 percent mention doing favours to friends
3. 50 percent mention the benefits to both parties as the main reasons for working on an undeclared basis, 21 percent mention the difficulty to find a regular job, 16 percent the perception of taxes being too high, and 15 percent the absence of other income. Southern Europeans are particularly likely to mention difficulty finding a regular job (41 percent) or having no other source of income (26 percent)
4. Europeans spend a median yearly amount of EUR 200 on undeclared goods or services, while the median yearly amount earned by those carrying out undeclared work is EUR 300
5. home repairs and renovations (29 percent), car repairs (22 percent), home cleaning (15 percent) and food (12 percent) are the most demanded undeclared goods or services
6. Europeans mostly carry out undeclared work in home repairs and renovations (19 percent), gardening (14 percent), cleaning (13 percent) and babysitting (12 percent).
7. Latvia, The Netherlands and Estonia have the highest proportion of respondents providing undeclared work (11 percent). However, there are important national differences in attitudes and perceptions of what constitutes undeclared work as well as in the nature and volume of the services involved.
8. 3 percent of respondents say they receive part of their pay “cash in hand”, a practice more likely in smaller companies. The proportion of annual income received as envelope wages is highest in Southern Europe (69 percent), followed by Eastern and Central Europe (29 percent), whereas continental and Nordic countries register lower levels (17 percent and 7 percent respectively).

The problems identified in the survey are due to be addressed in a Commission proposal in April to launch a European Platform on the prevention and deterrence of undeclared work that would aim to step up cooperation between Member States to tackle the issue more effectively.

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“Undeclared work not only exposes workers to dangerous working conditions and lower earnings but also deprives governments of revenue and undermines our social protection systems. Member States need to implement policies to discourage undeclared work or encourage its transformation into regular work, and to work more closely together to combat this scourge. This is why in April the European Commission will propose to launch a European platform on the prevention and deterrence of undeclared work, that would improve cooperation between labour inspectorates and enforcement bodies across Europe”, EU Commissioner for Employment, Social Affairs and Inclusion László Andor commented.