Vattenfall - The Netherlands: fraud against Portuguese social security and tax system
The Belgian contractor Fabricom in the building site of Vattenfall worked with several Portugese agencies, i.e. Inforgesta , SIMI and Limas. These agencies paid their workers enough according to the Dutch collective labour agreement (CAL). Unfortunately, after looking at the Portugese payslips, it turned out these agencies abused the Portugese system of ‘extraterritorial allowances’. While the housing, boarding and transportation of the workers were being paid (as stipulated in the CAL) by their employer and contractor, the workers receive most of their wages as net allowances for exactly the ‘extraterritorial costs’ they were not incurring.
This way most of the wage is exempted from social premiums and income taxes in Portugal. Another example of unfair competition in the labour market. The Portugese workers are not complaining because of their high wages, but in the long run they fail to build up pension and unemployment benefits – and the Portugese state is missing out a fortune worth of premiums and taxes.