The government has changed the procedure for calculating social benefits for sole proprietors and self-employed individuals
On April 29, the Cabinet of Ministers approved a resolution that officially extends the rules for calculating average wages for social insurance payments to sole proprietors, self-employed individuals, and members of farming enterprises. Now, periods during which entrepreneurs were exempt from paying the unified social contribution (USC), particularly during martial law, are included in the calculation and do not reduce the amount of sick leave or maternity leave benefits.
This is stated in Cabinet of Ministers Resolution No. 533.
The document closes a legislative loophole whereby the lack of contribution payments in certain months reduced the amount of maternity benefits. A separate mechanism provides that the average income for these categories will be calculated based on the actual insurance contributions paid “for oneself.” The Pension Fund is obligated to ensure payments based on claims and calculations even to those female entrepreneurs who exercised their right not to pay the USC and have no other insurance.
The clarifications also concern payment for the first days of temporary disability: the employer pays for the first five days of illness, and in cases of occupational diseases or workplace injuries, this period is 17 days. The basis for calculating benefits remains an electronic or paper sick leave certificate, along with data from the register of insured persons. The new rules ensure a fair level of social guarantees for small business owners, regardless of their status as contributors during specific periods of Russian aggression.
The Verkhovna Rada has postponed consideration of the bill on introducing VAT for sole proprietors in order to work with the IMF to develop a more balanced approach that will not harm small businesses during the war.
Prior to this, Ukraine and the IMF signed a memorandum on a 5% military levy for an indefinite period and VAT for sole proprietors.
