Krasnodar, April 25 – Yug Times
Russia cracks down on employers paying illegal 'gray' wages below minimum
Russia's Federal Tax Service Office No. 2 for Krasnodar is systematically monitoring tax agents that pay wages below the subsistence minimum. By analyzing tax documents, inspectors identify unscrupulous employers who attempt to evade taxes through "gray" wage schemes. Under these schemes, employers officially pay only part of the salary—subject to personal income tax and insurance contributions—while the rest is handed out in cash "under the table."
If "gray" wage payments are uncovered, the employer faces tax liability under Article 122 of the Russian Tax Code. Fines range from 20% to 40% of the unpaid tax amount, in addition to back taxes assessed.
In the first quarter of 2026, the tax office charged individual entrepreneurs and violating organizations an additional 45 million rubles in personal income tax and 104 million rubles in unpaid insurance contributions.
Employees can verify their official salary, personal income tax deductions, and employer-paid insurance contributions using the Federal Tax Service's "Personal Account for Individuals" in the "Income" section.
To report violations, citizens can use the Federal Tax Service's "Contact the FTS" online service, according to the Krasnodar office of Russia's Federal Tax Service No. 2.
