Undeclared work in Hungary reaches the level of South East Europe

In 2013 the black economy produced 22 percent of Hungary’s GDP. For instance the same ratio is 7.5 percent in Austria and 15 percent in Slovakia, but 28.4 percent in Croatia and Romania.

Randstad’s Flexibility at Work 2014 study also revealed that in the last few years the level of undeclared work only dropped 1 percent in Hungary. Randstad Hungary managing director Sándor Baja reckons that the government’s efforts to whiten the black economy by reducing the tax burden on work haven’t worked out so far. The study also found that there is a correlation between the frequency of money paid without an invoice being issued in various fields of life and the frequency of undeclared work. According to Flexibility at Work 2014, the more flexible the regulation of atypical employment in a country is, the lower the level of undeclared work is.