ECONOMY

Resort areas targeted for intensive labor inspections

Labor Minister Yiannis Vroutsis announced on Tuesday the start of intensive inspections in certain areas of the country in a bid to root out undeclared labor.

The checks begin on Thursday and will be conducted by joint groups formed by a total of 563 officials of the Labor Inspection Squad, the Special Agency for Social Security Monitoring and the Financial Police. Vroutsis also revealed the locations where the inspections will take place, including all tourism destinations apart from those in Attica and Central and Western Macedonia.

Labor inspectors have produced data showing that undeclared labor amounts to 38.4 percent in enterprises monitored, although this may be far above the actual rate of social security violation as the inspections took place on targeted employees following complaints to the Labor Inspection Squad.

All signs point to levels of undeclared labor beating every record this year at holiday destinations, with cuts of up to 40 percent in salaries contributing to the wave of employees willing to work without social security. This trend will become clear in the fall, when social security funds post a reduction in revenues.