Benefits of declared employment: protection of labor rights and support of the economy

Press service of the State Tax Service of Ukraine, published 06 August 2025 at 09:20 Chapter: News

Declared employment is formalization of employment relations according to the law. This means that the employer pays all necessary taxes and levies, including single contribution to obligatory state social insurance, personal income tax and military levy. In turn, the employee receives protected labor and social rights.

Advantages of declared employment:

- safe working conditions stipulated by labor protection legislation;

- fixed job obligations according to the employment contract;

- guaranteed working week (up to 40 hours or up to 60 in critical infrastructure);

- regular salary, not lower than the minimum wage, after deduction of taxes and contributions;

- absence of illegal fines and deductions, except in cases provided for by the law;

- paid vacation leaves, including additional ones for childcare, etc.;

- possibility of training and advanced training without loss of earnings;

- compensation in case of illness, accident, unemployment, as well as pension.

Undeclared employment deprives the employee of any guarantees:

- not recorded in official documents;

- does not give right to sick leave, vacation, insurance or pension;

- deprives the budget of revenues in the form of taxes and single contribution.

Ukrainian legislation clearly defines liability for the use of undeclared employment. Violation of labor law requirements provides for fines for employers, as well as tax consequences.

Declared employment is a contribution to stability of the country, support for the economy and guarantee of your future.