In Ukraine, they are planning to introduce a mandatory accumulative pension system

The Government of Ukraine has announced a plan to introduce a mandatory accumulative pension system, which should improve the pension provision of citizens. also to the notification of the "Sudovo-yuridychna Gazeta", the new system provides for the monthly deduction of part of the income to the individual accounts of Ukrainians, which will become an additional source of income in the retirement age.

The Ministry of Social Policy presented the draft law "On universal mandatory accumulative pension provision", which provides for the introduction of mandatory payments to state or non-state pension funds for both employees and employers.

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

Mandatory accumulative contribution for employees will be 1% of the accrual base in the first year, 2% in the second, and 3% in the third year. Employees will also be able to pay an additional cumulative contribution in similar proportions.

For employers, the mandatory cumulative contribution will be 1% in the first year, 2% in the second and 3% in the third year. From the fourth year, if the employee pays an additional contribution, the employer allocates part of the single contribution to the accumulation contribution.

Self-employed persons must also pay accumulation contributions.

Failure to pay or late payment of contributions will result in a penalty of 20% of the amount not paid on time.

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