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Signed Memorandum of Cooperation for Support to the fight against undeclared work

Signed Memorandum of Cooperation for Support to the fight against undeclared work
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On 04.04.2016 was signed a Memorandum of Cooperation between the Ministry of Labour and Social Policy, the State Labour Inspectorate, the Confederation of Free Trade Unions of Macedonia, Federation of Trade Unions of Macedonia, Business Confederation of Macedonia and the Union of Independent and Autonomous Trade Unions of Macedonia within the project Support to the fight against undeclared work.

The size and scope of undeclared work and the gray economy in Macedonia occupies a large portion of the working population, which according to some reports is 22.5% of the total number of people who work or as a percentage of GDP, undeclared work in Macedonia ranges between 10% (survey of the National Bank 2013) to 35% (Schneider 2010) of GDP.

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In Macedonia undeclared work is most prevalent in agriculture, construction, transport, hotels and restaurants, trade and services. The age group most involved in undeclared work is of 15-30 years  men a more likely to be engaged in undeclared work, students and pensioners. Undeclared work is most noticeable among employees for seasonal work, part-time work and most common payment is  ,,payment of salary in an envelope” and mostly in small and medium enterprises.

The purpose of this memorandum is to facilitate the discussion in terms of analysis, design, creation, implementation and monitoring of policies and measures to tackle undeclared work and the gray economy in Macedonia.