France’s Urssaf recovers €1.5 billion from undeclared work in 2025

Friday 20 - 16:00

By: Sahili Aya

France’s Urssaf recovers €1.5 billion from undeclared work in 2025

France’s social security collection agency, Urssaf, announced that it recovered over €1.5 billion in 2025 by combating undeclared work. The initiative targets workers who do not report income, depriving both themselves and the public system of social contributions.

Undeclared work represents more than half of social security fraud, and the agency has set ambitious targets: to identify and halt €5.5 billion in hidden labor practices by 2027 and to recover €540 million over the same period. While these figures are smaller than overall tax fraud in France, estimated at €80–100 billion annually, social security fraud remains a serious concern, particularly given the agency’s projected €23 billion deficit in 2025.

The sectors most affected include transportation services with drivers (VTC), construction, and restaurants. Fraud can take many forms, such as concealing employees, undeclared working hours, disguised subcontracting, or abuses related to international mobility.

To improve enforcement, Urssaf relies on advanced data analysis techniques, professional training of specialized inspectors, and partnerships with police and other agencies. Additionally, a draft law is currently under debate in Parliament to strengthen measures against social fraud, aiming to recover €2.3 billion in 2026, with €1.5 billion directly benefiting social security accounts. Critics, including the Defender of Rights, have warned of potential risks to individual privacy due to enhanced access to personal and communication data.

The efforts reflect a broader push to preserve social solidarity and ensure that contributions to France’s welfare system are fairly collected and distributed.