Cyprus has reduced undeclared work from 15% in 2016 to 5% in 2026, Labour Minister Marinos Moushouttas said on Tuesday, who pointed out the role of European cooperation and strengthened labour inspections in tackling illegal employment practices.
Addressing the conference of the European Labour Authority in Larnaca marking the 10th anniversary of the European Platform Tackling Undeclared Work, the Minister said Cyprus had made ‘full and constructive use’ of the platform’s tools and cooperation mechanisms over the past decade.
He said the country organised two Mutual Assistance Programme actions between 2018 and 2024, which contributed to strengthening Cyprus’ labour inspection system through technical expertise, institutional capacity-building and more effective inspection procedures.
Moushouttas noted that Cyprus also participated actively in joint inspections with other EU member states, helping improve operational know-how and cross-border cooperation.
He described undeclared work as a ‘complex challenge’ that undermines workers’ rights, distorts fair competition and deprives economies of important revenues, while also eroding trust in institutions and weakening the principles of fairness and equality underpinning the European social model.
The Minister also said Cyprus views the fight against undeclared work not only as a matter of regulatory compliance but also as an issue of social fairness, economic resilience and institutional credibility.
Referring to upcoming EU initiatives, Moushouttas stressed the importance of labour mobility as a cornerstone of the European Union and welcomed progress on the Fair Mobility Package.
He also highlighted what he described as a major achievement of the Cyprus Presidency of the Council of the EU, saying that after ten years of negotiations, Cyprus succeeded in reaching an agreement with the European Parliament and securing member states’ approval on the revision of the Regulation on the Coordination of Social Security Systems.
According to the Minister, the reform strengthens the rights and social protection of mobile workers, provides greater legal clarity and modernises rules governing long-term care, family and unemployment benefits.
Moushouttas reaffirmed Cyprus’ commitment to supporting the work of the platform within the framework of the European Labour Authority and pledged continued investment in cooperation, knowledge-sharing and joint action to promote fair labour conditions across Europe.
ELA chief says undeclared work detected in 30% of joint EU inspections
Undeclared work was detected in around 30% of all concerted and joint inspections supported by the European Labour Authority since 2021, with about half of the cases identified in the construction sector, ELA Executive Director Cosmin Boiangiu in his own speech.
He said that during the first Week of Action on Undeclared Work, organised from February 16 to 22 this year, 18 member states carried out simultaneous joint inspections across sectors and borders.
According to Boiangiu, inspectors checked 2,294 companies and interviewed 5,239 workers during the operation.
The inspections uncovered under-declared working hours, undeclared employment, bogus self-employment, suspected social security fraud and unsafe working conditions, he said.
‘It is not a technical matter. It is a question of fairness, dignity and trust,’ he said, adding that undeclared work weakens wages, compromises workplace safety and erodes confidence in labour markets.
Boiangiu said the European Platform, established in 2016 and later integrated into the European Labour Authority, had created an unprecedented level of cooperation among labour inspectorates, social security institutions, tax authorities, labour ministries and social partners.
‘No country can address undeclared work by acting alone,’ he said, stressing that labour mobility and unfair practices increasingly transcend national borders.
He also praised Cyprus for its active contribution to cross-border enforcement, noting that the country had already participated in 34 concerted and joint inspections facilitated by ELA.
Boiangiu also called for giving ELA access to EU funding mechanisms to provide targeted expert support to member states in the field of labour markets and declared work.