State Control Committee toughens liability of employers for wages in envelopes

24 апреля 2021

The State Control Committee proposes to toughen the liability for employers paying wages to their employees in envelopes up to 7 years of imprisonment. 

Only employers benefit from such practices. The employees are deprived of all social guarantees. After all, this money is supposed to go to pensions and other social payments. Today, however, some businessmen prefer not to contribute to the Social Security Fund and pay salaries in envelopes. Unfortunately, many employees, without thinking about the consequences, agree to such payments. 

According to the State Control Committee, the cases of employers paying wages in envelopes and evading deductions to the Social Security Fund are now found in every region of the country. 

One of the latest illustrative examples is the case of a Bobruisk firm providing outdoor advertising services. Using such a scheme, the crooks managed to save a million rubles on taxes. 

Today, the maximum penalty for wage fraud is only 580 rubles. Therefore, it is not surprising that some employers after paying the fine are going back to their old ways. MPs are now considering a bill to amend the Criminal Code enhancing the employers’ liability.