The Law of Ukraine

“On Raising the Prestige of Miners’ Work”

Date of entry into force:
September 16, 2008

The scope of the present Law shall apply to workers that extract coal, iron-ore, non-ferrous metal ores, rare-earth ores, manganese and uranium ores, workers of mine building enterprises that shall be employed at underground works full time (hereinafter referred to as miners) and members of their families.

According to Article 2 of the present Law, the state shall promote the development of coal-mining industry and mining industry and shall create the environment for highly productive and safe labor on the basis of mechanization and the introduction of high technologies into production processes. Central bodies of executive power in the area of ensuring the implementation of government policy in coal-mining industry and mining industry shall approve for each coal-mining and mining enterprise a program of modernization, technical re-equipment of production capacities and occupational safety.

Article 3 of the present Law shall establish that the salary scales (the schedule of official salaries) of miners shall be formed on the basis of the basic salary rate of a worker of the first class that shall exceed the legislatively established minimum wage at least by 30 percent, with due consideration for gradual transfer of all miners to hourly salaries and the achievement of the average European level of miners’ salaries.

The rate of personal income tax for miners shall constitute 10 percent of their salaries and other incomes received at their principal place of employment by workers who have full time employment at underground works (Article 4 of the present Law).

Miners that have a work record of underground works at least for 3 years, children whose parents have a work record of underground works at least for 15 years, children of miners who perished as a result of an industrial accident, and disabled miners of group I and group II shall be taken in hors concours to state-owned and communal higher educational institutions and vocational schools of Ukraine according to their own choice of profession for the purpose of studying at the expense of funds of the State Budget and local budgets, along with the provision of places in student hostels for the period of their study and guaranteed payment of a scholarship at the rate of the minimum subsistence level established by the law for employable individuals at the expense of funds of the State Budget.

According to Article 6 of the present Law, miners who require an improvement in their living conditions shall have the right to receive a loan at the expense of the enterprise in the amount identified in the collective agreement for the purpose of residential construction or purchase of apartments or detached residential houses. Miners who are young specialists and require an improvement in their living conditions shall have the right to receive the above-mentioned loan on a priority basis according to the collective agreement. Miners who require an improvement in their living conditions shall also have the right to receive a land plot for the purpose of building detached residential houses according to the procedure established by the Cabinet of Ministers of Ukraine. Family members of miners who perished as a result of an industrial accident and who require an improvement in their living conditions shall also be provided with residential housing at the expense of funds of the State Budget according to the procedure set forth by the Cabinet of Ministers of Ukraine.

Until they reach the retirement age in connection with the loss of their bread-winner, family members of miners who perished as a result of an industrial accident shall receive a supplement for each unemployable family member at the rate of the minimum subsistence level established by the law for disabled individuals at the expense of funds of the State Budget according to the procedure set forth by the Cabinet of Ministers of Ukraine.

The minimum size of a pension for miners who have worked at underground works at least 15 years for men and 7.5 years for women according to the list No.1 of productions, works, professions, offices, and indicators approved by the Cabinet of Ministers of Ukraine shall be set forth regardless of their last place of employment at the rate of 80 percent of the average salary of a miner, but it shall constitute at least three portions of the minimum subsistence level set forth for disabled individuals (at the moment – UAH 1,494.00). For the purpose of calculating the size of a retirement pension, an additional year shall be added to the insurance record for each full year of their work record at underground works (Article 8 of the present Law). The relevant amendments shall be introduced by the present Law to Article 24 of the Law of Ukraine “On Universal Mandatory State Pension Insurance”.

According to Article 9 of the present Law, the Fund for Social Insurance against Temporary Disability shall be annually allocated 50 paid trip packages to health and recreational facilities for each 1,000 workers working at underground works.

Final Provisions of the present Law shall introduce amendments to Article 40 of the Law of Ukraine “On Trade Unions, Their Rights and Guarantees of Their Activities” and Article 41 of the Law of Ukraine “On Occupational Safety and Health”. According to these amendments, the technical inspectorate of sectoral trade unions that shall oversee the adherence to working conditions and safety regulations of miners shall be granted the right to terminate works at an enterprise in the instance of gross violations of safety regulations and occupational safety and health standards.

The present Law shall also institute an order “For Brave Miners’ Work” of I, II and III degree.

It shall be stipulated that in the instance of paying pecuniary compensation for the cost of coal and coal cakes provided free of charge in the amounts and according to the list of professions that shall be established by the Cabinet of Ministers of Ukraine, its amount shall not be included in the overall taxable income of a personal income tax payer.

Amendments shall be introduced to Article 24 of the Law of Ukraine “On Universal Mandatory State Pension Insurance”. According to these amendments, the period of disability as a result of an industrial accident or an occupational disease shall be included in the insurance record for the purpose of appointing a retirement pension, as well as to the insurance record of working in harmful conditions, which shall grant the right to appoint a pension under preferential terms and conditions and at a preferential rate.

The present Law shall establish that mining enterprises shall have to pay insurance contributions calculated for the relevant basic reporting period not later than within 28 calendar days from the date of expiry of the relevant period (amendments to item 14 of Final Provisions of the Law of Ukraine “On Universal Mandatory State Pension Insurance”).
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