Anyone who has ever received part of their salary in an envelope has surely heard from the employer: “It will be better this way – less taxes, more take-home pay.” But is it really like that? Understanding what lies behind shadow employment, what it threatens, and why ultimately the worker loses the most was helped by the head of the control and audit department of the Gomel Regional Office of the Social Protection Fund, Lydia Prutik.

When part of the earnings is paid unofficially and the employer does not remit contributions and taxes, everyone loses: the state fails to receive revenue, mandatory payments do not go into the budget, the employee is deprived of social guarantees, and for the business the consequences turn into significant losses. A person working unofficially cannot count on sick leave pay in case of illness, injury, pregnancy and childbirth, caring for a sick relative, while vacation pay and other guarantees, compensations provided for by legislation remain questionable. In the best case, the employer will pay for such days “at a minimum,” and in the worst case – leave the employee without money at the most needed moment. Pension is also calculated based on official earnings, so an “envelope” today means a small pension tomorrow.

As long as the scheme of shadow employment remains uncovered, the employer benefits: his profit grows due to underpayment of taxes, contributions, fees. However, supervisory bodies keep their finger on the pulse and, upon finding grounds, conduct an inspection based on the fact of hidden payments. And then the savings turn into serious expenses.

Since August 18 of last year, concealing workers' real income has become especially costly. For example, with an employee who has not signed a labor contract, in August they were given 500 rubles in an envelope. If the fact of payment of hidden wages is established, the employer will pay mandatory insurance contributions amounting to 35% of the sum of the payments made, but not less than 1/30 of five times the average salary of workers in the republic for each calendar day for which such payment was made. In July, the average salary of workers was 3172 rubles, five times that – 15,860 rubles. In the given case, the employer will have to transfer 5,551 rubles (calculation: 15860*35%) in mandatory insurance contributions instead of 175 rubles that could have been paid from the officially accrued wages.

In addition to significant amounts of accrued mandatory insurance contributions, the employer will face penalties and administrative fines. If the amount of unpaid contributions exceeds 20 basic units, the official will pay a fine. In case of large amounts – from 2,500 basic units – criminal liability applies.