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22 December, 2024
 
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Tougher penalties for employers skirting social security

Government to crack down on unregistered workers

Newsroom

The government is poised to toughen penalties for undeclared work in an effort to address the widespread issue.

According to a report on Philenews, two bills aiming to double fines for employers who fail to register workers with Social Security Services are set to be voted on by the House of Representatives on Thursday, October 24.

Supported by the Labour Committee, the legislation will also introduce an electronic census of all workers via the Ergani system, requiring employers to regularly update employee information and employment terms.

Labour Minister Yiannis Panayiotou highlighted the damaging effects of undeclared work, which undermines workers' rights, fair competition, and social funds. He noted that Cyprus's overall undeclared work rate is about 13%, with sectoral variations.

The increased fines are expected to serve as a strong deterrent, discouraging employers from bypassing worker registration.

[Information sourced from Philenews]

 

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