When you do undeclared – informal – work ("work under the table"), you do not pay taxes on what you earn. Society is based on everyone who works paying taxes. The taxes are used for healthcare, roads, care for older people and other welfare services available to all citizens. If you work under the table, it can be difficult for you to get a rental agreement for a flat or buy things on hire-purchase (credit). Landlords and companies will often want you to show an employment contract.
If you do undeclared work:
- You will not have an employment contract, which means you can be cheated out of your pay
- You will not get any unemployment insurance if you should lose your job
- You will not receive and sickness compensation or holiday pay
- You will not receive any sickness or parental benefit
- You will receive a lower pension
- You will not be insured if you happen to injure yourself or someone else, or accidentally break something when you are working.