Law of Ukraine

"On Collection and Registration of the Single Contribution for Mandatory State Social Insurance"

Date of entry into force:
January 1, 2011

The Law determines the legal and organizational principles for ensuring collection and registration of the single contribution for mandatory state social insurance, the terms and procedure for its accrual and payment, and the authority of the body that carries out its collection and registration.

According to Article 1 of the Law, the single contribution for mandatory state social insurance (hereinafter referred to as "single contribution") is a consolidated insurance payment collected to the mandatory state social insurance system, regularly and on a mandatory basis, in order to ensure the protection of the right of the insured persons and their family members to receive insurance benefits under the effective types of mandatory state social insurance, in cases provided for by the legislation.

The payers of the single contribution, according to the Article 4 of the Law, are:
  • employers;
  • employees citizens of Ukraine, foreigners (unless otherwise established by international agreements deemed mandatory by the Verkhovna Rada of Ukraine), and stateless persons;
  • natural persons that carry out work (provide services) for enterprises, institutions and organizations, or for other legal entities;
  • natural persons entrepreneurs, including those who have chosen the simplified taxation system, and family members of such persons that take part in their entrepreneurial activity;
  • self-employed persons who carry out independent professional activity;
  • citizens of Ukraine who work in diplomatic representative offices and consular institutions of Ukraine located outside of Ukraine;
  • persons working on elective posts in the bodies of state power, bodies of local self-government, or citizen associations, and receive salary (compensation) for working in such capacity;
  • persons receiving temporary disability benefits, etc.

Article 8 of the Law establishes that the amount of the single contribution for each category of payers determined by the Law, and the ratio of its distribution per type of mandatory state social insurance are established with the consideration that they must provide for insurance benefits and social services for insured persons, as provided for by the mandatory state social insurance legislation.

The single contribution is not part of the taxation system. The tax legislation does not regulate the procedure for accrual, calculation and payment of the single contribution.

Article 18 of the Law envisages that the source for forming the State Register of Mandatory State Social Insurance is information provided to the Pension Fund by:
  • state registrars of legal entities and natural persons entrepreneurs;
  • payers of the single contribution;
  • insured persons;
  • mandatory state social insurance funds;
  • state civil status act registration bodies;
  • state tax service bodies;
  • state statistics bodies;
  • state employment service;
  • other enterprises, institutions, organizations and military units;
  • bodies of the State Treasury of Ukraine;
  • territorial bodies of the Pension Fund, based on the results of inspections of the single contribution payers;
  • other sources provided for by the legislation.

The Insurer Register is an automated data bank created to record information about insurers that are payers of the single contribution (Article 19 of the Law).

The Insured Person Register is an automated data bank created to enable unified recording of information of natural persons subject to mandatory state social insurance according to the law (Article 20 of the Law).

According to Article 24 of the Law, banks, when opening accounts, shall demand that legal entities and natural persons provide documents that certify their registration in the Pension Fund bodies as payers of the single contribution.

According to Article 25 of the Law, the decisions made by the Pension Fund bodies in the issues that lie within their competence according to the Law, are binding for payers of the single contribution, officials and insured persons.
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