On the 15th of November 2024 the House of Representatives, in an effort to combat undeclared employment, passed and announced stricter penalties on the employers who violate the provisions of Social Insurance Law of 2024. In particular, in case of detection of the violation, by an inspector,
a fine of €1.000 is imposed per employee for the month of the infringement. The existing legislation for an additional fine of five hundred euros (€500) for each previous calendar month or part thereof, remains unchanged.
If a repeated violation is detected by the same employe within two years of the initial violation, the fine shall be as follows:
1. First violation €1.000
2. Second violation €2.000
3. Third (and any consequent from this point on) violation €3.000
It is noted that the provisions of the legislation regarding the period of employment (6 months plus the current month the violation was found) and emoluments (1.5 times the basic insurable earnings in force on the day the violation is detected) still apply. In case it is proven that the employment period and emoluments are higher than the aforementioned provisions then the actual data are taken into consideration. In case the employer can prove that the employee was employed for lesser period or at a lower salary then the relevant fines will apply on the actual data.
The new Law comes into force immediately and is intended to ensure fair and legal employment.