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the State loses 10 billion euros per year

Undeclared work continues to be costly to public finances. According to a recent report from the High Council for the Financing of Social Protection (HCFIPS), the shortfall for the State linked to this phenomenon is estimated at more than 10 billion euros for the year 2023. A considerable figure which puts highlight the scale of the problem.

Undeclared work: nearly 2.5 million French people affected

According to a study by Employment guidance advice dating from 2019, it would be close to 2.5 million French people who practice an undeclared activity. A significant number which still represents a minority of the active population. But the phenomenon worries public authorities.

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Urssaf, which actively fights against hidden work, distinguishes two main types of fraud:

  • Totally hidden workwhich would represent a shortfall of between 6.2 and 7.8 billion euros according to estimates.
  • Errors and deliberate omissions on the basis of declared contributionsor between 1.8 and 2.3 billion euros in evaded levies.

The most affected sectors

Certain sectors of activity are particularly affected by undeclared work:

  • Construction and the hotel and catering industry account for more than 50% of the adjustments made by Urssaf.
  • Commerce, in the national average of frauds observed.
  • Industry and services show lower rates.
  • Agriculture still has 345.7 million euros in losses linked to this phenomenon.

Among the risk profiles, we find in particular self-employed people working via online collaborative platformswhich have the highest fraud rates (up to 42% of undeclared contributions).

Certain regions are particularly affected by undeclared work. Île-de-France, the South (PACA, Corsica) and Languedoc-Roussillon record rates significantly higher than the national average. Proof that the phenomenon is unevenly distributed across the territory.

A strengthening of controls planned

Faced with the scale of the problem, Urssaf plans to strengthen its controls in the coming years.

Objective : double the number of adjustments by 2027. Furthermore, the HCFIPS recommends the establishment of a system for deducting social security contributions at source for income generated via online platforms. A measure which could make it possible to fight more effectively against the fraudulent practices of certain self-employed people.

A bit of a geek and passionate about new technologies, I bring you the hi-tech news of the moment but not only that… I am closely interested in current affairs and I love analyzing it. So I do everything possible to make it understandable for everyone. I believe journalism must go beyond the facts, adding passion and thoughtfulness to truly engage and enlighten.

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