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Undeclared workers rush to register at Social Insurance Services

Fear of hefty fines for undeclared work has led to the registration of 3,150 workers to the Social Insurance Registry in less than three months.

Labour Ministry official Antis Apostolou said that the number inclues hundreds of freelance workers, with the rest being registered through their employer.

The rush is at its peak these days as the deadline before fines are to be applied is next Monday.

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Apostolou said that the exact number of undeclared workers is hard to calculate, but approximately 15% of workers in carried-out inspections are found to be unregistered.

He also said that those employers or freelancers who declare that they were unregistered will be spared the administrative fine and will not pay the additional fine which could reach 27%.

The administrative fine is €500 for every undeclared worker and is retroactive for up to six months, meaning a maximum administrative fine of €3,500.

The administrative fine for freelancers is up to €200, he said.

Apostolou said that in Cyprus the largest percentage of undeclared work is found at restaurants and entertainment venues (25%), along with the construction sector (20%).

Approximately 30% of EU workers are undeclared, while the same is true for 15% of Cypriot workers.

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