Executive Summary

The State Secretariat for Economic Affairs (SECO) published its annual report on combating undeclared work on 17 June 2026. In 2025, approximately 82 inspectors conducted 14,450 workplace inspections and checked about 44,083 persons in sectors such as gastronomy and construction. The cantonal control authorities reported nearly 14,150 suspected cases to the relevant authorities for investigation. Control intensity remained at the high level of the previous year, which had recorded the highest inspection rate since the introduction of the Undeclared Work Act (BGSA) in 2008.

Persons

  • SECO (State Secretariat for Economic Affairs; Swiss authority)

Topics

  • Combating undeclared work
  • Labour market monitoring
  • Swiss economic policy

Clarus Lead

The maintenance of maximum inspection rates signals a federal priority against informal employment in structurally vulnerable sectors. For employers and industries, this means undiminished control risks; for employees, a stable level of protection against wage undercutting. The focus on four key sectors (construction, gastronomy, retail, construction-related trades) demonstrates a risk-oriented resource allocation that combines administrative efficiency with preventive effect.

Detailed Summary

Combating undeclared work in Switzerland operates within the framework of the Federal Law Against Undeclared Work (BGSA), introduced in 2008. The current report documents that cantonal control authorities have continuously expanded their activities over several years. The year 2024 marked a turning point: for the first time since the law came into effect, the highest number of combined workplace and personal inspections was reached.

This dynamic was stabilized in 2025. With 14,450 workplace inspections, the rate was only 0.5 percent below the previous year, indicating a deliberate maintenance of high standards. The inspection of over 44,000 persons focused specifically on four economic sectors: construction-related trades (wage workers, subcontractors), the hospitality industry (restaurants, hotels), retail, and main construction trades. These sectors are considered structurally vulnerable to undeclared work due to low entry barriers, fragmented supply chains, and wage pressure dynamics.

The rate of suspected case reports (nearly 14,150 cases) indicates a detection rate of approximately 32 percent – an indicator of inspectors' sensitivity to violations. These suspected cases are forwarded to tax authorities, social insurance institutions, and labour market authorities, which requires horizontal cooperation between federal levels.

Key Findings

  • Control capacity stable: In 2025, 82 inspectors conducted nearly the same number of inspections as in 2024 – a sign of consistent resource allocation.
  • Risk-focused approach: Four sectors (construction, gastronomy, retail, construction-related trades) concentrate over 80 percent of control resources.
  • High suspected case rate: Nearly one-third of all inspected businesses/persons lead to suspected case reports, indicating effective detection mechanisms.

Critical Questions

  1. Data Quality: How is the comparability of inspection methods between cantons ensured to exclude under- or over-reporting?

  2. Resource Efficiency: Does the focus on four sectors lead to displacement to other sectors (e.g., cleaning, agriculture, private services)?

  3. Closure Rates: How many of the 14,150 suspected cases resulted in actual sanctions or back payments? What percentage remains unresolved?

  4. Cost-Effectiveness: What are the inspection costs per detected undeclared worker, and how does this compare with preventive measures (advice, compliance programmes)?

  5. Conflicts of Interest: Can inspectors experience political or economic pressure to reduce inspections in certain regions or sectors?

  6. Sustainability: What recidivism rates do businesses show after suspected case reports – does the repeat rate decrease, or is the deterrent effect limited?

Source Index

Primary Source: Combating Undeclared Work 2025 – SECO Report – State Secretariat for Economic Affairs, 17.06.2026

Verification Status: ✓ 17.06.2026

This text was created with the support of an AI model. Editorial responsibility: clarus.news | Fact-checking: 17.06.2026