The impacts of illegal work include not only billions in lost tax and social security revenues, but also the distortion of competition, downward pressure on wages, and a deterioration of labour standards. Analyses suggest that losses to public finances may reach tens of billions of Czech crowns annually. The Kobra 26 initiative and stricter legislation aim to improve institutional cooperation and strengthen the effectiveness of efforts to combat illegal work.

Key takeaways:

• Illegal employment causes billions in losses to public budgets and undermines fair competition.
• The majority of illegally employed workers are third-country nationals, especially in low-skilled sectors.
• The Kobra 26 initiative aims to reduce illegal and disguised employment.

Policy brief – Martin Zeman

The analysis is in PDF under the link below.