Support The Moscow Times!

Medvedev Slams Under-the-Counter Salaries

Prime Minister Dmitry Medvedev suggested Tuesday that the government needed to adopt a two-pronged approach to fighting under-the-counter salaries: better laws and educating taxpayers.

Medvedev said the payment of cash in envelopes remains a serious problem even though the government has worked hard to bring salaries out of the shadows.

"We need to work on this issue," he said at a government meeting on the federal budget.

Medvedev said the problem was not only in legislation and its enforcement but was also a psychological issue.

"People need to understand that when they receive wages in envelopes, this at the end of the day reduces government opportunities to spend and decreases the value of their future pensions," he said.

Gray salary schemes have been prevalent for decades, first to hide unofficial income in Soviet times and more recently to lower or eliminate income tax. One of Vladimir Putin's first major policy changes after being elected president in 2000 was to declare a flat 13 percent income tax aimed at convincing all taxpayers to declare their real salaries.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more