The Senate approved the law aimed at reducing informal employment in Uzbekistan

At the forty-first plenary session of the Senate, the law "On amendments and additions aimed at reducing informal employment to some legal documents of the Republic of Uzbekistan" was considered. This was reported by the press service of the upper house of the parliament.

The law is aimed at ensuring the employment of the population and further strengthening social protection, reducing the share of informal employment, as well as providing comprehensive support to self-employed persons. The law introduces changes and additions to the Tax Code and the Law "On Real Estate".

In particular, the amount of social tax by individuals who are in labor relations with an individual entrepreneur is determined to be 50% of the current base calculation amount, and now it is at least one time of the annual base calculation amount.

Also, according to the amendment, livestock (cattle, sheep, goat, horse, etc.), greenhouse, poultry (quail, turkey, goose, duck), rabbit breeding, beekeeping, fishery, garden It is established that citizens engaged in citrus, lemon, and flower growing activities will be allowed to pay social tax in a voluntary manner, regardless of the area of their homestead plot or the number of pets and poultry they care for.

For this reason, the requirements for the area of the plot of land are excluded from the Law "On Real Estate Management".

Adoption of the law serves to reduce unemployment and reduce informal employment in the neighborhoods, increase the number of formal jobs, and provide citizens with work experience and an acceptable pension when they reach retirement age.

At the end of the discussion, the law was approved by the senators.

Informal workers are workers who work in enterprises that do not have the status of a legal entity. This category includes unregistered individual entrepreneurs, self-employed persons and their employees, except for representatives of the secret sector working without registration of labor relations.

In October 2022, the Institute of Forecasting and Macroeconomic Research analyzed the trend of decreasing employment in the informal sector. According to him, in 2022, the total economically active population will be 14.98 million people. A total of 13.7 million people are employed, 6.5 million of them (47 percent) are in the formal sector.

If it is assumed that employees in the informal sector receive the same amount of wages as employees in the formal sector, in 2022 alone, due to the fact that more than 9 million people are employed in the informal sector, 32.9 trillion soums will be allocated to the state budget in the form of taxes. did not fall.