Proposed legislation to cap administrative fines for undeclared labor in Cyprus

The Cyprus government has submitted a bill to the Parliament that proposes capping administrative fines imposed for undeclared labor. Under current regulations, employers and self-employed individuals face a daily surcharge of 50 euros for delayed payment of these fines, which has led to a total accumulated debt of 65.6 million euros. The new proposal suggests that the surcharge cannot exceed double the amount of the initial fine. If passed, the regulation will be applied retroactively from June 2, 2017. Authorities estimate that this measure would reduce the total outstanding debt from approximately 65.6 million euros to 7.9 million euros. The bill will be reviewed by the Parliamentary Labor Committee, chaired by Giorgos Koukoumas. Critics argue that the measure effectively writes off nearly 58 million euros in state revenue and rewards non-compliant employers. Supporters view it as a necessary adjustment to unsustainable fine accumulations.