New Approach to Calculating Average Salary for Social Insurance Benefits
On April 30, 2026, the Cabinet of Ministers of Ukraine adopted Resolution No. 533, introducing revised regulations for calculating average wages used in social insurance payouts. These changes specifically target individual entrepreneurs (known as FOPs), self-employed individuals, and members of farming enterprises. For context, Ukraine's social insurance system provides financial support during illness, maternity leave, or workplace injuries, but prior rules lacked clear guidelines for these groups.
Under the updated framework, the calculation of sick leave and maternity benefits now includes categories that previously had no specific provisions for social payments. The old legislation did not establish distinct conditions for FOPs and those engaged in independent professional activities, creating barriers to accessing benefits.
Major Adjustments to Benefit Calculations
A pivotal change is that months when a person was exempt from paying the unified social tax (USC) will no longer reduce the amount of benefits. Previously, such periods negatively impacted the average salary calculation, but they are now taken into account in favor of insured individuals.
Regarding payment for the initial days of incapacity, employers are now required to cover the first five days of illness at their own expense. In cases of workplace accidents or occupational diseases, the employer's payment period extends to 17 days. The basis for calculating assistance is a sick leave certificate, which can be either paper or electronic, along with a salary statement or data from the register of insured persons.
For FOPs, self-employed persons, and farming enterprise members, the average income is calculated based on the insurance contributions actually paid. Thus, the new rules establish a separate mechanism for these categories, enabling them to receive social benefits more fairly.
Additionally, starting April 1, 2026, updated regulations for issuing and monitoring sick leave certificates came into effect in Ukraine. The Pension Fund has been granted expanded powers to verify the validity of issued sick leaves and to demand the return of paid funds if violations are found. These measures aim to enhance the transparency and efficiency of Ukraine's social insurance system.
The changes approved by the Cabinet of Ministers are designed to simplify the process of obtaining social benefits for self-employed individuals, which could positively impact their financial stability in case of unforeseen circumstances such as illness or injury.
The rule update also improves oversight of spending from social insurance funds, potentially reducing the risk of abuse in this area.
In addition to these significant updates for individual entrepreneurs, the recent changes in sick leave procedures also align with broader reforms in Ukraine’s social support systems. For more insights on how these adjustments could impact various aspects of social insurance, including the latest pension fund initiatives, read about the new payment schedules introduced by the Pension Fund.