MOSCOW, April 24 (RAPSI) – Russia’s Labor Ministry drafted a bill to introduce fines for employers that provide misleading reports on their social security contributions, Izvestia newspaper reported on Friday.
Fines would reportedly amount to 5 percent of all contributions that should have been made in the last three months, but not more than 30 percent of monthly contributions and not less than 1,000 rubles ($19).
The bill aims to boost the fight against illicit salary schemes when official wages are underreported, says an explanatory note to the bill.
The Labor Ministry expects that large fines will encourage employers to abide by the law.
Over 20 million people or 15 percent of the population might not receive retirement benefits because their employers do not make timely contributions, Izvestia reported, citing Russia's State Pension Fund.