Approximately 10,000 individuals were found working "off the books" this year
Around 8,000 of the 10,000 people identified by the authorities since the beginning of the year as working without employment contracts in the Republic of Moldova have since been formally employed. According to Labour and Social Protection Minister Natalia Plugaru, inspections continue to ensure these workers remain legally employed and do not return to undeclared work.
In recent years, authorities have identified more individuals working without an employment contract as inspections aimed at combating undeclared work have intensified. Previously, authorities detected only about 100 people working unofficially each year.
"We have made excellent progress regarding informal labor. When the campaign began a few years ago, only about 100 people were identified annually. Just imagine: across the entire country, only 100 people working without a contract," stated Natalia Plugaru on the program "În Context" on Moldova 1.
The minister added that, following the formalization of employment relationships, the relevant institutions monitor whether these jobs are maintained in the long term.
"This year, we identified 10,000 people working without an employment contract, and the compliance rate has been quite good. Out of those 10,000, I believe around 8,000—up to 8,000—have moved to formal contracts. We then conduct follow-up checks after a certain period to ensure that these contracts remain in effect and have not been terminated" Natalia Plugaru explained.
Transitioning to formal employment gives workers access to legal protections, including when they can no longer work for medical reasons. Furthermore, the social security contributions paid on their behalf help fund the public social insurance system. "And this is an extremely positive thing, as it increases state budget revenues and ensures the individual has social security coverage—providing protection in the event of a workplace accident, a need for medical leave, or eligibility for a pension; it covers all these aspects," explained Natalia Plugaru.
Another issue involves paying a portion of one's salary "off the books." Unlike cases where no employment contract exists at all, this practice is harder to detect, as employees are officially registered in the system, but not all the funds they receive are reported to the authorities.
"It is much more complex for us to intervene here; however, we are examining the experiences of other countries to see how inspections can be conducted to effectively verify that a salary is not being fully declared. There are various mechanisms—such as analyzing an individual's job title, specific duties, and whether they work full-time or part-time—which can then be cross-referenced against the salary reported", the minister added.
Working without a formal contract also impacts the pension an individual will receive in old age. In the Republic of Moldova, pension value depends on how long social security contributions were paid and on the income officially declared.
Consequently, those who have worked informally—or who have received a portion of their wages "in an envelope"—risk ending up with a lower pension than they would have received had all their income been fully declared.
