The Estonian government approved of a bill (Jan. 9) that creates a registry starting July that should intensify the fight against unreported workforce.
Currently, a new employee can be registered a week after the start of employment, but in the future, it has to be done before the employee starts working already.
The Finance ministry has said the plans help fight against unreported or envelope wages whilst it gives security to employees. It also reduces the administrative burden of the state and the entrepreneurs, it says.
Whilst currently the employer has to submit data about an employee to the Health Insurance Fund and Unemployment Insurance Fund, in the future, only data will only have to be submitted to the Tax and Customs Board.
Similar methods or registering employees have been used by Finland, Sweden and Norway for example to fight against envelope wages.