Starting from October 1, Ukrainian entrepreneurs who pay salaries in cash will face new requirements. The decision by the National Bank of Ukraine to withdraw coins of 1, 2, 5, and 25 kopecks from circulation presents legal and accounting challenges for businesses, which could lead to penalties.
The essence of the problem: the law's requirement against financial reality
Ukrainians have long stopped using coins of 1, 2, and 5 kopecks, and starting from October 1, 2025, the 25-kopek coin will also be withdrawn. This creates problems for employers, as the law requires the exact calculated salary amount to be paid, but the physical absence of small coins makes it impossible to issue cash that is not a multiple of 10 kopecks.
Risks for the employer: underpayment or accounting difficulties
Underpayment. Rounding down the amount is a violation of labor legislation and may lead to fines.
Overpayment. Rounding up, although safer, may complicate accounting and require additional taxation.
Recommended solutions
Experts advise employers to switch to cashless payments to avoid legal risks. Companies that pay salaries via bank cards do not face this problem, as electronic transactions allow for the transfer of exact salary amounts.
If maintaining cash is important, combined payment options may be possible, such as an employee's request or combined payment.
Special attention – upon termination
Upon final settlement with an employee on the day of termination, it is necessary to avoid underpayment by rounding the amount up. This will help avoid legal issues and ensure full settlement without delays.
The new rules for cash salary payments in Ukraine create legal and accounting challenges for businesses, requiring employers to find new ways to solve this problem. Experts recommend switching to cashless payments to avoid risks and ensure accurate salary payments.