Third of Montenegrins Working in ‘Grey’ Economy


News
26 Dec 14

Third of Montenegrins Working in ‘Grey’ Economy

About 30 per cent of Montenegrins work in the unofficial and untaxed labour market in one form or another, a recent survey has found.

Dusica Tomovic
BIRN

Podgorica

A survey conducted by the Labour Ministry in Montenegro indicates that over 14 per cent of all those working in the country work completely in the black market – which means their employment is not registered in any form or taxed.

The contracts of another 16 per cent of workers meanwhile do not indicate their entire salary, so these employees are receiving part of their wages in cash.

The government in 2015 will launch a broad inspection of the labour market in order to curb the extent of unregistered work, the Labour Minister, Predrag Boskovic said on Thursday.

“Over the next year we will see what the weaknesses are, in order to create the best conditions… when it comes to employment and the labour market,” he said.

Boskovic said the Labour Ministry, the Ministry of Finance and the business community should work together on tax rates.

Last year, the International Labour Organisation noted a significant increase in the number of employees working in the grey economy in Montenegro in the period from 2000 to 2010.

Its Global Employment Trends report said growing irregular employment remained a major challenge for the labour market in the most countries in the region.

Source: Balkan Insight (Montenegro)