The measures taken by the Government towards reporting real salaries significantly increase the number of legally employed citizens in Ukraine. Prime Minister of Ukraine Volodymyr Groysman announced, commenting on the interim results of the Government campaign against illegal employment. It triggered actively in October - at the initiative of the Head of Government and in close co-operation of several departments: the Ministry of Finance, the Ministry of Social Policy, the Pension Fund, the State Fiscal Service and the State Labor Service. Thus, only in a month the number of legally employed citizens has grown by at least 150 thousand people. And the revenues of the Pension Fund by the end of the year will increase by at least UAH 1.1 billion.
"Salary issues are a matter of protecting people. We are responsible for the millions of employees", stressed Volodymyr Groysman. "We must strengthen coordination and protect the interests of people working. People whose payroll will be official will get a declared salary, and therefore will have the right to a decent pension."
The Head of Government stressed that the ally of the Cabinet of Ministers in this struggle is legal business, which works within the legal framework, pays all taxes and actively supports social programs at their enterprises. Such work is a landmark for entrepreneurs, while violators of the law will be imposed fines.
However, as the PM emphasized, the fine is not a goal in itself. It is vital to root out a practice of paying envelope wages. After all, nobody will pay pension in envelopes. And there will be nobody to lay a claim for a minimum accrued payment.
"Protecting the rights of working people will be continued on a daily and systematic basis. I will be demanding a monthly report about how many people have started getting official wages. I also commission weekly meetings. Our allies are legal businesses and each citizen of Ukraine."
According to the data provided by the State Labour Service, today the number of working population in Ukraine exceeds 16 million people. The number of unemployed citizens under methodological descriptions of the International Labor Organization - about 1.7 million. Nearly 300 thousand people are registered as unemployed. In September, the Government initiated approval and further implementation of a number of decisions aimed at protecting the rights of wage workers in terms of employment rights compliance and further social protection of workers upon reaching retirement age. The reason for this was numerous cases of violations of workers' rights and inability to check compliance with the law when inspectors simply were not allowed to enter enterprises. Construction, trade, security services, hotel and restaurant businesses appeared to be the most problematic sectors because of the largest number of illegal and undocumented workers in the said sectors. Kharkiv, Kyiv, Ivano-Frankivsk, Odesa regions are the leaders in the regional context.
"We are facing a great challenge – protection of the rights of employees. If this is not done today, after a certain period of time these people will receive only the minimum size of pensions. And even worse, if an injury happens in the workplace, thus the person will not receive compensation", the Prime Minister stressed earlier. "It is essential to mobilize work and ensure that employers should not only respect and pay decent wages to their workers, but also officially register them".
One of the instruments designed to remedy the situation is employer inspections. There already exist 130 cases of imposition of fines.