Ukraine is tightening penalties for employers who pay employees undeclared wages. The government and regulatory agencies, according to Perviy Biznesovy, have announced expanded inspections and tougher sanctions aimed at combating informal employment. PromPolitInform reports.
According to the State Tax Service, in 2026, special attention will be paid to sectors where undeclared payments are traditionally highest—services, construction, trade, and small businesses. Labor inspectors will receive expanded inspection powers, and fines for using undeclared labor will increase severalfold.
If violations are detected, employers may be fined significantly more than the amount of undeclared payments. Furthermore, liability is provided for refusing to allow inspectors to conduct an inspection; such actions are considered a violation of labor laws and are punishable by separate sanctions.
The government notes that shadow wages deprive workers of social benefits, reduce their insurance record, and affect future pensions. At the same time, shadow employment reduces tax revenues and creates an uneven playing field for businesses.
As a reminder, the increased oversight is intended to encourage employers to formally employ workers and pay wages transparently.
