One in five Russians work informally

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In Russia, the share of shadow employment continues to decline – working without official registration of labor relations. newspaper reports “News” With reference to the RANEPA study.

In the first half of 2023, one in five working Russians, or 21.9%, was in the shadow sector, which was 2.1 percent less than in the previous year. The black labor market in the country continues to decline, despite all the hardships caused by the sanctions and the economic crisis, according to the study.

According to experts, the main reason for this positive trend is the increasing legal literacy of the population and the people’s desire for greater stability. Workers begin to appreciate the guarantees formal employment provides. In addition, Izvestia states that an income tax of 13 percent today does not seem like an excessive burden.

However, 21.9% of shadow businesses is still a very high figure for Russia. Millions of people are outside the legal sphere and their salaries do not fill the country’s budget.

Most often, young people aged 18-24 find themselves “in the shadow” – it is more difficult for them to get a job officially due to lack of experience. There are also a large number of visitors to the big cities in the shadow business. The share of unregistered employment in private enterprises reaches 29%.

Experts believe that the number of shadow workers will continue to decrease in the coming years. The main reason for this is the growing shortage of workers in Russia, which forces employers to offer formal employment with a full social package.

Companies are forced to compete for employees, including good working conditions. In addition, many of them actively collaborate with self-employed and individual entrepreneurs, which reduces the scope of shadow wages.

However, the situation varies greatly by region. Izvestia states that while shadow employment has decreased to 21.9% in the whole of Russia, this figure is still 38% in the North Caucasus.

In mid-August, the Cabinet announced plans to ensure benefits provided to employees of defense industry backbone enterprises.

Previously in the Russian Federation Established single personal income tax rate for remote workers.

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