Undeclared work in Moldova: Key risks and solutions
The number of undeclared work cases remains quite high in the Republic of Moldova.
While over 3,000 people were found working without employment contracts in 2024, the number is already nearing 5,000 in 2025, according to Andrei Prisacari, head of the Chișinău Territorial Labor Inspectorate. Most often, workers agree to work unofficially for a higher wage than the national average, which businesses are willing to pay formally to reduce their state taxes.
According to Andrei Prisacari, about 30% of the labor market operates in the informal economy, and since the beginning of the year, 4,700 cases of undeclared work have been recorded.
"We periodically run information campaigns and intensify controls to the maximum. We are collaborating with the State Tax Service and the General Inspectorate for Migration to combat undeclared work. We are also aiming to digitize employment contracts; we would like to reach that level," Prisacari said on the "Public Space" show on Radio Moldova.
Informal work has a significant presence in agriculture and construction
A report by the National Confederation of Trade Unions of Moldova shows that while the phenomenon of "off-the-books" work is decreasing compared to previous years, the numbers still remain high.
For example, while the share of informal economic activity was 22.4% in 2020, it decreased to 20.6% in 2024 and to 16.6% in the first quarter of 2025.
Last year, the share of "off-the-books" work in agriculture was 64.4%, a slight decrease from 65.7% in 2020. In construction, it was 53.8% in the first quarter of the current year, down from 63.3% in 2024 and 65% in 2020.
The same report also reveals that undeclared work among employees was 5.8% in 2024, down from 7.1% in 2023.
"A worrying finding is that undeclared work is 7.6% for men and 4.2% for women. And, obviously, the highest proportion is in agriculture, industry, commerce, and construction," said Sergiu Sainciuc, vice-president of the National Confederation of Trade Unions (CNSM), on Radio Moldova.
In Chișinău, the phenomenon is prevalent in the HoReCa sector, with waiters, bartenders, and cooks being the most exposed.
Risks for workers
Trade union representatives draw attention to the serious consequences for people who work "off the books."
"The person is deprived of rights: they will not benefit from paid leave, they will not receive temporary disability benefits, they will not receive childcare benefits, and they will not receive state social security benefits upon retirement. In other words, the losses are very significant," the CNSM vice-president highlighted.
According to the same source, the number of employers who do not pay social insurance contributions is decreasing, but the phenomenon remains present: 6.1% in 2024, compared to 6.7% in 2022.
The minimum wage doesn't cover the cost of a decent life
Another factor fueling informal work is the low level of wages.
"How do you convince someone to accept an official contract if the legal wage doesn't cover their basic necessities? First, 5,500 lei (the minimum national wage—ed. note) doesn't, in principle, cover the minimum cost of living. The minimum cost of living for an adult was 3,000 lei in 2024, and for a child, it was 5,800 lei. This would mean the minimum wage should be at least 5,800 lei net, not gross as it is today. If we talk about gross, it should be around 7,000 lei per month. The second aspect: a minimum wage should cover a minimum pension. The minimum pension is only covered around 80%," calculated Sergiu Sainciuc.
According to official data, in the first quarter of 2025, the national average wage was 14,568 lei. However, in agriculture, the sector with the highest proportion of informal work, the average wage is only 9,244 lei, the lowest in the economy. In construction, the wage reaches 12,172 lei, in commerce—nearly 10,000 lei, and in the processing industry—around 12,000 lei.
Solutions: Digitization and information campaigns
To reduce the proportion of informal work in the national economy, authorities and social partners propose several solutions.
One of these would be the digitization of controls, which involves introducing drones for surveillance and electronic registers, following Romania's model.
"The electronic register of employees provides for a standardized employment contract. If the employer does not fill in all the fields, the document is not accepted," Prisacari mentioned on Radio Moldova.
Another solution would be information campaigns. Trade unions and employers' associations have launched awareness campaigns about the risks of undeclared work and the benefits of a legal contract.
Last but not least, incentives for employers would also be beneficial.
"Over the years, several incentive mechanisms have been introduced for employers who legally hire their employees," said Vladislav Caminschi, executive director of the National Confederation of Employers of the Republic of Moldova.
However, the problem also remains at the administrative level: the small number of labor inspectors. Nationally, there are only 60 inspectors, with 15 of them in Chișinău.
Translation by Iurie Tataru
