Soros Foundation Moldova Supports Government Fiscal Justice Policies
miercuri, 16 noiembrie 2022, ora 16.18
According to International Labour Organization, about 30 percent of Moldovans are not covered by pension and health insurance schemes. Most of them are working in agriculture, construction, and trade. This happens because employers do not declare wages in full and therefore do not pay all the appropriate taxes. At the same time, employees often accept such arrangements, which gives them higher incomes now, but a higher vulnerability in the future.
Soros Foundation Moldova, in partnership with Expert-Grup think-tank and Ministry for Labour and Social Protection, held a conference to discuss the new governmental policies to fight undeclared work and to ensure proper protection for low-income people. Non-participation in the pension and mandatory medical insurance programs means that people who do not declare all their income will have a minimal pension. In case of illness, they will not be covered by medical insurance and will have to cover the expenses for medical services, suffering even more financial pressure.
„The public policies we are discussing today must target three actors – employees, businesspeople, and authorities. First, the interests of the people must be considered, who too often are faced with existential dilemmas—higher income today versus insecurity tomorrow, or perhaps honest behavior today versus a slim hope of security in the future,” said Petru Culeac, Executive Director of the Soros Foundation Moldova at the conference, on November 4, 2022.
„I have a message for businesses that use undeclared work. We know that you, like the whole country, are going through many crises, and the question of survival arises for many. At the same time, you know that we have a friendly approach towards businesses. We understand that we can develop only by having as many successful businesses as possible; that’s the only way to get out of poverty. We are ready to help you make the transition from illegal to legal work as easy as possible,” said Maia Sandu, President of the Republic of Moldova.
The policies implemented by the Government include offering tax incentives to employers to promote formalized labor relations, issuing vouchers to stimulate legal work in agriculture, simplifying declaration processes, and an awareness campaign about the benefits of participation in pensions and health insurance programs and the risks of partially undeclared work, and reforming the State Inspectorate of Labor.