From October 1, new rules for salary payments: what penalties threaten businesses.

According to inkorr.com: Starting from October 1, Ukrainian entrepreneurs paying salaries in cash face new requirements. The decision of the National Bank of Ukraine to withdraw coins with denominations of 1, 2, 5, and 25 kopecks from circulation creates legal and accounting challenges that could lead to fines.

Problems with Payments

The essence of the problem: the law's requirement against financial realities

Many Ukrainians have long stopped using coins with denominations of 1, 2, and 5 kopecks, and starting from October 1, 2025, the 25-kopeck coin will also be added to this. This complicates the situation for employers since the law requires salary payments to be made in exact amounts, but the lack of small coins complicates cash payouts of amounts that are not multiples of 10 kopecks.

Risks for Employers

Risks for the employer: underpayment or accounting difficulties

• Underpayment. Rounding the sum downwards is considered a violation of labor legislation and may lead to fines.

• Overpayment. Rounding upwards, while safer, can complicate accounting and lead to additional taxation.

Experts' Suggestions

Recommended Solutions

Experts advise businesses to switch to cashless payments to avoid legal risks. Companies that pay salaries to bank cards will not face these problems, as electronic transactions allow payments in exact amounts.

If preserving cash is critically important, combined payment options are possible, such as a statement from the employee or combined payments.

Special Attention – Upon Dismissal

When making a final settlement with an employee on the day of dismissal, it is important to avoid underpayment by rounding the sum upwards. This will help prevent legal complications and ensure timely full settlement.

The new rules for cash salary payments in Ukraine create legal and accounting difficulties for businesses, requiring employers to seek new solutions. Experts recommend switching to cashless payments to avoid risks and ensure the accuracy of salary payments.