The Fes do not agree with the opinion of experts about the increase in informal employment in Russia

MOSCOW, August 24. /TASS/. Experts explain the growth of informal employment in Russia with the desire of businesses to reduce their costs. The Fes did not agree with the conclusions of experts about the increase in the share of informal labor market and announced the legalization of 5 million workers for 2.5 years.

Earlier it was reported that the proportion of employees involved with varying intensity in the non-criminal informal labor market (i.e. monthly have unformed work or get paid “under the table”), grew up in Russia, from 40.3% in 2016 to 44.8% this year. This is stated in the research Center of socio-political monitoring, Institute of social Sciences of Ranepa. It is constantly included in the informal labor market is 31.4%, or 23 million workers (a year earlier the figure was 28.8%), the experts said Ranepa.

Low unemployment and low wages

Director of social research National research University “Higher school of Economics” (HSE) Ovcharova believes that the share of the shadow labor market has increased due to the economic downturn in Russia. “In order to minimize costs, part of the business left in the shade,” said the guardian.

Scientific Director of HSE Yevgeny Yasin said TASS that due to the fact that Russia today is in a state of uncertainty, business is afraid to make large investments and tries to minimize their costs. Including, gives its staff salaries “in envelopes” to avoid taxes and social obligations.

“If rising wages “in envelopes”, that means employers will pay less to the Pension Fund and other funds. In the current situation where employees only pay income tax, they agree to work informally”, – said Yasin.

To solve the problem of low wages in Russia need global reform, said the Agency interlocutor.

Position Of The Fes

As told TASS Deputy head of Rostrud Mikhail Ivankov, the Agency does not agree with the conclusions of experts about the growth in the share of informal labor market because they are based on the data of a sociological survey.

He recalled that starting in 2015, the Fes in accordance with the instructions of the government of the Russian Federation coordinates the work of regional authorities aimed at identifying those areas of the economy where the risk of informal work is most prominent.

“The results of this work for two and a half years in the subjects of the Russian Federation legalized more than 5 million workers. According to the Pension Fund of the Russian Federation as a result of the measures taken in 2015-2016 to the budget of the FIU additionally received 27.3 billion rubles. However, additional funding was received in the regional budgets at the expense of deductions on personal income tax”,- said the Deputy head of Rostrud.

According to him, employers who violate labor laws, are involved not only in administrative but also criminal liability. But the Fes has resorted to such measures only in extreme cases.

So, evasion from the registration or improper registration of the employment contract entails imposition of penalty on officials in the amount from 10 to 20 thousand rubles. An individual entrepreneur may be fined in the amount from 5 to 10 thousand rubles, and legal entities – from 50 to 100 thousand rubles.

“In addition, paying a salary of gray, the Director carries not only administrative, but also criminal liability article 199 of the criminal code of the Russian Federation”,- said Ivankov. This article provides imprisonment up to two years, said the Agency.