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The Ministry of Employment marked a record in terms of appointments and the creation of 63,122 new jobs (after lay-offs and retirements) in September, along with the announcement of the introduction of new, higher fines for undeclared jobs, which will be imposed on employers who do not declare these in their declarations to the Social Insurance Institute (IKA).

The increase of the fine, which should result in the fact that all appointments will match contributions to the insurance fund was announced by Minister of Employment Yiannis Vroutsis, his deputy and the Secretary General of the Ministry during the presentation of the balance on employment in September (however, without an analysis of the type of contracts, the majority of which are part time, according to information).

"An entire city of 63,122 workers appeared on the formal labour market in September because of inspections and new fines, confirming the transformation of the black labour market in legitimate jobs," said Vroutsis, warning that inspections will continue. The estimated number of jobs is a record for the last 14 years and most of them have emerged after 12 September, when the increase from 500 to 10,500 euro of the fine for each undeclared job was announced.

Fines

The fine for an undeclared job is 18 times the minimum wage of the undeclared job, i.e. 10,550 euro for undeclared workers over 25 years and 9,200 for those under 25, and it is directly imposed. A 30% reduction is provided, if it is paid within 10 days. A further 500 euro will be imposed if the employee is found to be without insurance and 5,000 euro - according to the number of employees and type of offence.

The decision for the increase of inspections related to social security contributions evasion and the introduction of new higher fines in 300 cases so far, is associated with the commitment of the Ministry of Employment to the Troika aimed at the increase of revenues of the social security fund IKA, as well as in order to avoid new cuts in pensions. According to the Ministry, this choice was justified and it will continue to combat clandestine work as a social and economic crime that deprives the insurance fund from revenues in the amount of 6 billion euro annually.

Gloomy forecasts

If the employers’ compliance with measures and increased employment continues (and it is not just a temporary phenomenon), the Ministry does not exclude the opportunity for a favourable change of forecasts of the Institute of Labour Confederation of Trade Unions, according to which the unemployment rate will increase to 34% (about 1.7 million) by 2016. From October 2008 to today, about 1 million jobs have been lost and the unemployment rate in March (27.4%) was the highest in the Western world of the last 30 years.