Author(s): Diana-Gabriela Pohață / Language(s): Romanian
Issue: 5/2024
This paper aims to analyze the impact of undeclared work on the state budget at the level of 2023, as well as on the citizen. Over the years, undeclared work has been defined by a number of terms, such as «undeclared work», «illegal work», «undeclared work», «gray work”. Irrespective of the formula specified in the specialized jargon, its consequences are devastating for a country’s budget, having a significant influence on the collection of the contribution due to the state budget by the employee and the employer. Another important aspect is the repercussions on citizens, limiting their access to certain rights,
i.e. a fair employment contract, social security, pension. Therefore, in the short, medium and long term, the repercussions of this scourge are significant. For this reason, I will analyze the impact of undeclared work in the case of a Romanian-owned company with 200 employees. This paper aims to study the influence of informal work on the state budget, as well as the consequences of this phenomenon on the employee. With this theme we want to bring back into discussion one of the issues that Romania is facing both in the past and in the present, namely - undeclared work / illicit work / gray work / untaxed work, at the level of 2023 and the way to evade the state budget by not paying social security contributions (CAS, 25%), health insurance contributions (CASS, 10%), income tax (IP, 10%), and the contribution to the insurance contribution for work (CAM, 2.25%).
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