What are the consequences of paying wages "in envelopes" and failing to pay mandatory insurance contributions?

The payment of "envelope" wages is a serious violation in the activities of economic entities. Both employers and recipients of such wages become participants in the shadow economy, causing damage not only to the state but also to themselves.

The payment of "envelope" wages is a serious violation in the activities of economic entities. Both employers and recipients of such wages become participants in the shadow economy, causing damage not only to the state but also to themselves.

Recipients of "envelope" wages, from which mandatory insurance contributions to the fund's budget have not been paid, lose social protection: disability benefits, pensions, and other social payments are calculated based on the official wage – as reflected in the company's accounting records.

Since June 19, 2021, employer liability for paying "envelope" wages has been strengthened in the Republic of Belarus, and the Law of the Republic of Belarus of May 26 No. 112-Z "On Amendments to Codes on Criminal Liability" introduced criminal liability for evasion of payment of mandatory insurance contributions (Article 2433 of the Criminal Code).

Criminal liability is provided for proven intentional actions related to the non-payment of mandatory insurance contributions, provided that the amount of unpaid payments exceeds a large sum – 2.5 thousand basic units (currently 72.5 thousand rubles).

Officials of organizations who accrue mandatory insurance contributions on all payments to employees in accordance with the law, but do not transfer them to the fund's budget within the established deadlines, bear administrative responsibility (Art. 12.15 of the Code of Administrative Offences).

Employers – eliminate the risks of administrative and criminal liability. Accrue mandatory insurance contributions on all payments to your employees and transfer them to the fund's budget on time!

Working citizens – do not agree to "envelope" wages, defend your rights to social protection!

Vitebsk Regional Department
of the Social Protection Fund of the Population.

https://vitebsk-region.gov.by/ru/news-ru/view/kakovy-posledstvija-vyplaty-zarplaty-v-konvertax-i-neuplaty-objazatelnyx-straxovyx-vznosov-21578-2021/