Platform workers severely under-declare their income, study finds

Platform workers severely under-declare their income, study finds

Platform employees, in particular VTC drivers, “very strongly” under-declare their income, even if this involves modest sums, according to a study published Tuesday by the High Council for the financing of social protection.

According to these results, which relate to 125,800 micro-entrepreneurs using platforms, the rate of social contributions evaded would be around 42% in 2020, or 82 million euros.

In the VTC sector, “nearly 90% of micro-entrepreneurs would have declared amounts lower than what the platforms recorded as turnover for those concerned, 30% would have declared nothing”, indicates the High Council, which has been acting as an observatory for hidden work since 2017.

The share of under-declarants would amount to 73% in the delivery sector, 51% in trade, and 44% in specialized scientific and technical activities.

The High Council publishes another survey on hidden work among private employers.

According to the survey carried out by Ipsos, a third of the individual employers questioned have already practiced underreporting and one in five employers have done so often or sometimes.

Childcare (extracurricular, etc.) and homework help are areas particularly affected by fraud, with under-declaration rates, by the employers questioned, close to 60%.

The under-declaration or non-declaration of employers “is above all linked to the low number of hours worked, 47% of individual employers indicating that the number of hours is not sufficient to require a declaration”.

Among the unreported or under-reported stakeholders, young people, men, those under 35 and managers and intermediate professions are over-represented. They justify it by the wish to “make ends meet” or “to be of service to family, friends or neighbors”.

The survey, carried out by Internet from April 19 to May 20, 2021, led to questioning 24,169 people, allowing to isolate 2,204 individual employers among whom 693 had not declared all or part of the people working at their home and 1,222 employees among which 528 indicated that they had not been fully or partially declared by their employers.

More generally, according to the High Council, concealed work would represent a shortfall for Social Security and unemployment insurance of 5.2 to 6.6 billion euros per year.

This represents between 2.2 and 2.7% of the total amount of declared social contributions.

To this is added the fraud to the agricultural scheme, assessed by the Mutualité sociale agricole (MSA) at 170 million euros.

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