White salary means confidence in the near future – Metinvest

Metinvest Group’s Director of Sustainable Development and Human Resources Tatyana Petruk emphasizes the benefits of official employment, which opens up many opportunities for workers, unlike those who choose to work under the table. This is discussed in the article by oboz.ua  “Guarantees and protection: Why Ukrainians with legal salaries live better than those who receive money under the table”. This is the second article in the «Support the Honest» information campaign dedicated to the culture of paying taxes.

«Paying salaries under the table is a common practice around the world. And Ukraine is no exception. With this system, part of the employee’s salary is paid officially, while the rest is paid in cash, without being reflected in the company’s financial statements. At first glance, receiving more money in hand may seem beneficial, but, in reality, an official salary has significant advantages that make it the better choice for an employee,» the statement said.

According to Tetyana Petruk, a white salary is a guarantee of a stable income that an employee will receive on time and in full, which means confidence in the near future, which is especially valuable in times of uncertainty.

The benefits of official employment include social protection, access to loans, and a guarantee of protection from unscrupulous employers.

First of all, officially employed people have access to a comprehensive package of social guarantees that provides them and their families with confidence in the future. However, if you receive a salary «in an envelope,» the right to all these guarantees will be lost. This can have serious consequences – especially in case of difficult life situations.

«A jobseeker receives all the benefits of official employment: access to medical and social insurance, paid sick leave, maternity leave and holidays. In addition, they will be able to count on receiving a pension in the future,» Petruk said.

At the same time, an official salary is a direct proof of income. This not only increases the chances of obtaining loans from banks and other financial institutions, but also provides access to loans on favorable terms. But with a “shadow” salary, the chances of getting a loan are significantly reduced. And lending conditions can be much worse. Employees who receive a white salary can also count on its indexation. And also to increase their income with the help of various tools.

In addition, the official salary is fixed in the employment contract, which is a legal document that protects your rights as an employee. If the employer fails to fulfill its obligations, you can apply to the state authorities to protect your rights. And with official documents, the chances of the state taking the employee’s side are much higher. At the same time, receiving a salary «in an envelope» effectively deprives an employee of legal protection, which makes him or her vulnerable to abuse by an unscrupulous employer.

In general, it is important to remember that the choice between official and an off-the-books salaries is not just a matter of getting more money in hand. It is a matter of your future and well-being. In addition, it is also a significant contribution to the country’s development, which is particularly important given the current circumstances in Ukraine. The taxes received, including on legal salaries, allow the state to allocate the necessary funds to the Ukrainian armed forces to complete their tasks, primarily to ensure the country’s ability to defend itself,» the message summarizes.

Earlier, Metinvest was included in the list of honest taxpayers in Ukraine by oboz.ua. The publication recognized the company as an example of a white employer.

In the first quarter of 2024, Metinvest, including its associates and joint ventures, paid UAH 4.2 billion in taxes and fees to the budgets of all levels in Ukraine. Payments increased 1.7 times year-on-year.