Ukraine's Pension Fund to Gain Audit and Recovery Powers Over Sick Leave from 2026.

Overhaul of Sick Leave Regulations in Ukraine

According to Novyny.live: Starting April 1, 2026, Ukraine will implement a new framework for issuing sick leave certificates. These changes, enacted by the Verkhovna Rada through amendments to Law No. 1105-XIV 'On Mandatory State Social Insurance', aim to reform the social insurance system. The key shift grants the Ukrainian Pension Fund (Pension Fund of Ukraine, PFU) enhanced oversight authority and a mechanism to reclaim improperly paid benefits.

The Ministry of Health of Ukraine will define the specific procedures for issuing sick notes, streamlining the process and ensuring compliance with the new standards. Concurrently, the territorial offices of the Pension Fund will conduct audits of these certificates. This dual approach is designed to reduce fraudulent payouts and protect the rights of legitimate employees. These reforms are part of broader efforts to modernize Ukraine's social safety net amidst ongoing economic challenges.

Revised Sick Pay Rates for 2026

A core component of the reform involves adjustments to sick pay calculations effective in 2026. Payments will be based on an employee's insurance record: 100% of average salary for over eight years of service; 70% for five to eight years; 60% for three to five years; and 50% for less than three years. The maximum daily allowance for temporary disability is set at 284.07 UAH. Furthermore, the maximum benefit for pregnancy and childbirth can reach 568.13 UAH.

In summary, the regulations launching on April 1, 2026, target increased efficiency and transparency within Ukraine's social insurance framework, aiming to curb abuse in the sick leave system. The introduction of these rules reflects a state drive to combat social insurance fraud, which could lead to budgetary savings. By linking benefit levels directly to an employee's insurance history, the system also aims for greater fairness among workers with varying experience. Successful implementation will require careful monitoring and adaptation by all stakeholders in the social insurance process.