Entrepreneurs are losing pension contributions: why the payment of the unified social contribution during employment is not counted

Problems with pension contributions for entrepreneurs

Entrepreneurs in Ukraine face the problem of losing pension contributions due to the peculiarities of paying the unified social contribution (USC). Legislation does not allow for the counting of USC paid by an entrepreneur who has a primary place of employment. This means that contributions paid by entrepreneurs during employment are not considered when forming pension rights.

According to current legislation, entrepreneurs are required to regularly pay USC for themselves. However, if an entrepreneur is employed, the contribution paid by them is considered excess or erroneous. This also applies in cases where the employer paid an insurance contribution less than the minimum amount, which is 1,760 UAH. In such situations, the entrepreneur's contribution may be counted, but only if the insurance contribution did not reach the minimum amount.

Legislative changes and their impact

The law 'On the collection and accounting of the unified contribution' makes it impossible to count USC paid during employment, threatening the pension payments of entrepreneurs. In addition, legislation provides for exemptions from USC payment for certain categories of Ukrainians, including entrepreneurs on the general system during periods of no profit. Among these categories are:

• persons with disabilities
• pensioners
• mobilized individuals
• military personnel
• residents of temporarily occupied territories
• Ukrainians who have been deprived of liberty as a result of the war

From October 2025, an expansion of benefits is planned for hired workers who work part-time, as well as for women on maternity leave. This may positively affect the situation; however, the issue of counting USC for entrepreneurs who are employed remains unresolved.

The problem of counting USC for entrepreneurs who are employed can significantly affect their future pension provision. This issue requires urgent resolution, as it depends on the financial stability of many entrepreneurs in Ukraine. The expected expansion of benefits may help certain categories of workers, but mechanisms must also be found for the full accounting of contributions from entrepreneurs so that they do not remain without proper pension payments in the future.