Draft Law on Payment of Penalties for Delayed Salaries

On 30 April 2025, the Verkhovna Rada adopted in the first reading Draft Law No. 9510, which provides for increased liability of employers for violation of the terms of payment of wages.

In particular, the Draft Law provides for:

  • introducing a penalty of 0.1% the debt amount for each day of delay in payment of wages (but not more than 100% of the total debt amount)
  • establishing the employer’s obligation to pay the debt, regardless of the term of its occurrence, in full, including compensation for the loss of part of the income due to inflation;
  • granting employees the right to demand payment of debts in court without time limits;
  • increasing the liability of company directors who systematically delay wages.

The Draft Law is currently being prepared for a second reading. Thus, we will closely monitor further developments in the status of this Draft Law and report on them in the future Legal News.