Businesses reporting real salaries brings extra UAH 1.3 bln Ukrainian budget – Fiscal Service

In September-December last year, employers legalized the work of 1.9 million hired workers.

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The State Fiscal Service of Ukraine (SFS) within the framework of measures implemented in September last year, aimed at unshadowing relations in the field of employment, has provided an additional UAH 1.3 billion hryvnia to the state budget.

In particular, the state budget received over UAH 590 million in personal income tax, UAH 49 million of military levy, UAH 727 million in a single social contribution, and UAH 27 million in a single tax, according to the SFS's press service.

"This allowed not only to increase deductions to the budget, but also to ensure the protection of the rights of hired employees to be paid for their work, to identify and eliminate the facts of illegal employment, to attract citizens to register with the state as economic entities. This is one of the steps to protect the interests of hired epmloyees, since they should be primarily interested in legal relations with the employer. After all, the 'shadow wage' has negative consequences, in particular, the lack of social guarantees," the press service quoted Acting Chairman of the SFS Oleksandr Vlasov.

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In September-December last year, employers legalized the work of 1.9 million hired workers, and following inspections by the SFS authorities together with the State Labor Service, 2,900 employees became officially employed.

It is also reported the SFS took part in the development of a draft decree on carrying out activities aimed at unshadowing employment in the areas of trade and public catering, construction, agriculture, transportation, medical care, provision of services.

The developed project was submitted to the Ministry of Finance for consideration and provides for the exchange of information between the SFS, the Ministry of Social Policy, the State Labor Service, the State Employment Service and the Pension Fund of Ukraine on the facts of revealing non-registered labor relations.

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