Head of Main Directorate of the STS in Rivne region Vitalii Chui reported that issue regarding payment of wages and official employment was and remains a priority for the STS of Rivne region. After all, the level of citizen’s social and pension protection depends on the amount of insurance experience and amount of wages from which contributions are paid. In addition, illegal wages not only weaken the social protection of employees but also reduce revenues to the budgets and state social funds.
As follows, Main Directorate of the STS in Rivne region identified 32 cases of violations by enterprises and individuals – entrepreneurs regarding the payment of wages (or other income) to citizens during January – June 2020. According to the audit results, the amount of 923.3 thousand UAH of the PIT, 77.5 thousand UAH of the military levy and 73.6 thousand UAH of the single social contribution was additionally charged to the budget.
In addition, the audit results revealed the labor use of 107 employees without proper registration of labor relations.
Currently, employees do not see any problems in obtaining a “shadow” wage. When they agree to work in such conditions, they deprive themselves of social guarantees. The verbal agreement is in no way legally fixed, the employer pays as much as he deems necessary and as long as he deems it necessary. Employee has no evidence to prove the actual amount of his / her wage and length of service. Accordingly, when the retirement age comes and the one needs to appoint pension, many people learn that its size is much smaller than expected, and for some the right to appoint pension is lost altogether.
“I appeal not only to employers – legalize the employment of employees and refuse to pay wages in the “envelopes” but also to employees – do not deprive yourself and your family from social guarantees, agreeing to illegal employment” – stated Vitalii Chui.