Ukrainian Prime Minister Arseniy Yatseniuk has urged businesses to legalize employment arrangements and increase salaries.

"We hope payroll will start growing," he said at a government meeting on Wednesday.

Yatseniuk said the single social security tax rate in 2016 was halved. He expects that business in response to the tax reduction will comply with the law and increase employee salaries The prime minister is confident that backdoor salaries do not benefit business.

Yatseniuk instructed the Finance Ministry and Social Policy Ministry to prepare data on the pace of payroll increases.