Hungarian labor market watchdog OMMF has investigated 16,500 companies in the first nine months, uncovering irregularities regarding employees at 8,239 of them and imposing fines of a combined HUF 1bn on 5,486, business daily Napi Gazdaság reported on Tuesday.
OMFF found some form of irregularities at 44% of the 160,000 employees checked in the period.
Late payments constitute 10% of all uncovered irregularities, the paper wrote. Other frequent problems related to holidays, overtime and wages.
Napi added that more and more companies go "phantom" after a first inspection, with their tax numbers revoked or even under liquidation during a planned second phase of investigation by the OMMF.
The sector employing most illegal laborers has shifted from the construction industry to security firms, OMMF figures show.