Speaking at a public discussion in Tashkent on July 30, Uchqun Abduganiyev, head of a department at the institute, said 48% of employed people in the country work informally.
According to Abduganiyev, the institute has been analysing ways to improve the efficiency of state budget execution. He said Uzbekistan should expand formal employment by strengthening labour rights protection, simplifying formal hiring procedures and enhancing oversight.
"Today, 48% of employed people, nearly half of the workforce, are engaged in the informal sector. As a result, the regular social tax base remains limited," he said.
Based on the institute's calculations, bringing 1 million workers into formal employment could generate up to UZS 3 trillion in additional tax revenue for the state budget.
Abduganiyev said such an amount would be sufficient to build 100 schools, each with a capacity of 480 students.
The latest estimate is higher than figures published by the Fiscal Analysis Institute in April, when it proposed revising Uzbekistan's minimum wage.
At the time, the institute estimated the informal employment rate at 38–40%. According to its analysis, around 5.4 million of the country's 14.7 million economically active people were employed in the formal sector.
