Ukrainians are in for a new pension reform: how much will have to be deducted from salaries.

The scheme of this salary accounting is reflected in the photo
The scheme of this salary accounting is reflected in the photo

The Cabinet of Ministers of Ukraine has developed a pension reform that provides for deductions from salaries.

According to the draft "On Compulsory Accumulative Pension Provision", developed by the Ministry of Social Policy, employees and employers must pay a mandatory contribution to state or non-state pension funds.

The draft provides for a reduction in the Unified Social Insurance Contribution from 22% to 17% in the first year, 16% in the second year, and 15% from the third year onwards.

Employees are required to pay a mandatory accumulative contribution, which will gradually increase, and they can also refuse to pay an additional contribution or resume its payment at the employer's request.

Employers will pay a mandatory accumulative contribution, which will depend on the accumulation base for the contribution over the years.

Self-employed individuals are also required to pay an accumulative contribution according to an established scheme.

Employers and the self-employed must pay the accumulative contribution simultaneously with the unified social contribution, and failure to make these payments may result in a fine.

The accumulative contribution is calculated from all types of employee payments and is not considered a tax.

Participants in the system must choose an institution for accumulative pension provision before starting to pay accumulative contributions. A State Accumulative Pension Fund will also be established for individuals who have not chosen another institution.


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