Shadow employment costs Ukraine’s state budget UAH 100B every year.

When Ukrainian employers do not declare their employment relationships and pay salaries in cash, the state budget of Ukraine loses revenue, which amounts to about UAH 100B ($2.73B) every year.

“The shadow employment level reaches 9% of the employed population, said Andriy Kharchenko,” a State Labor Service official. “The employer must understand that by creating new jobs, he can receive both state support and compensation,” the official noted.

Kharchenko emphasized that due to the war in Ukraine, scheduled and unscheduled compliance inspections were suspended, particularly with labor legislation. However, from June 16, 2023, by order of the Ministry of Economy, State Labor was allowed to conduct unscheduled inspections regarding undeclared work.