Daily News

View All News

Russia – Labour agency to fine unemployed in a bid to tackle black employment

27 May 2015

Russia’s Federal Labour and Employment Service, Rostrud, is considering introducing fines for those registered as unemployed in an attempt to tackle the country’s growing illegal job market, reports The Moscow Times.

According to the proposal, every citizen over the age of 18; not currently in education, retired, or officially employed, will be obliged to pay an as-of-yet unspecified fine.

The measure is reportedly intended to boost Russia’s tax revenue by bringing more people out of the “black” labour market. Rostrud hopes to legalise more than four million workers by the end of the year.

Registered unemployment, which tracks lower than actual unemployment, stood at 4.4 million in April 2015, equating to an unemployment rate of 5.6%, according to figures from Russia’s federal statistics agency Rosstat.

While the proposal might encourage a small number of those working illegally to formalise their working arrangements; the vast majority, should the proposal pass, will most likely not be in a position to do so.

Depending on the level of the fine; those working illegally will probably be in a position to pay it, while those who are genuinely unemployed will not.