Cyprus cuts undeclared employment rate threefold over ten years

The Republic of Cyprus has made significant progress in tackling undeclared employment, reducing its rate from 15% in 2016 to 5% in 2026. This was announced by Minister of Labour Marinos Mousiouttas during a conference in Larnaca focused on labour market transparency and compliance with labour legislation.

According to the minister, achieving these results was possible due to the consistent strengthening of the labour inspection system and active cooperation with European Union member states within the framework of the European Platform tackling undeclared employment.

Mousiouttas noted that Cyprus not only implemented European practices but also offered its own innovative solutions for identifying violations and increasing control over employers. Special attention was paid to sectors at high risk of undeclared work, including construction, tourism, agriculture, and the service sector.

The minister emphasized that reducing illegal employment helps protect workers' rights, increase tax revenues, and create fairer competition conditions for businesses.

At the same time, the authorities acknowledge that the problem has not completely disappeared. Against the backdrop of growing labour mobility, digitalization of the economy, and changes in the European labour market, Cyprus will have to face new challenges.

“The future looks positive, but it requires continuous adaptation of control mechanisms and strengthening the transparency of the labour market,” noted the head of the Ministry of Labour.

The authorities of the Republic of Cyprus intend to continue modernizing the inspection system and expanding cooperation with European structures to further reduce undeclared employment.