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Ukrainian president urges business to increase wages by at least 20-30%

Ukraine’s President Petro Poroshenko urged domestic business to increase wages by at least 20-30%. President noted that employers pay 23% less tax on the payroll. And, in his opinion, this should lead to an increase in salaries
Ukrainian president urges business to increase wages by at least 20-30%

“I have one request: Give it to your employees,” – President Poroshenko urged Ukrainian business owners during a meeting of the National Reform Council, Joinfo.ua reports with reference to UNIAN.

Salaries in Ukraine should be at least 20-30% higher due to 22% lower unified social tax in 2016.

President Poroshenko added that this will increase the solvency of the population and demand, and increase revenues to local budgets in the form of tax on personal income.

“It is a powerful incentive for us to seek legalization [of income] and to not pay wages in envelopes,” – said Poroshenko.

An audit conducted by Ukrainian fiscal authorities in 1-2Q of 2016 shows that more than 60% of companies do not respect tax laws on employees’ personal income completely

Reducing the unified social tax from 36% to 22% on average has not led to the expected legalization of salaries in the first half of 2016.