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Ukraine

Updated by Juliane Winkelmann on 21.04.2017

The Constitution of Ukraine, which was adopted by the Parliament in June 1996, affirms that every citizen has the right to social security which provides income security in the event of incapacity for work, loss of a breadwinner, unemployment, old-age and other cases envisaged by law.

The existing social protection schemes in Ukraine are as follows:

  • Pension insurance, which provides old-age pensions, disability pensions, survivor’s pensions, long service pensions and burial benefit;

  • Unemployment insurance, which provides unemployment benefit, lump-sum benefit for employees, vocational training, retraining and ocupational development for the unemployed, organization of public works, etc.;

  • Sickness insurance, which provides sickness benefit, maternity benefit, funeral assistance, sanatorium treatment and health improvement benefit;

  • Employment injury insurance, which provides benefit for injured persons in case of temporary disability, total disability and death due to industrial accident as well as medical care;

  • Social assistance, which provides assistance to families with children, low-income families, persons disabled from childhood and children with disabilities;

  • Social protection for war veterans, which provides lump-sum assistance, special privileges and grants for war veterans;

  • Social protection for the consequences of the Chernobyl accident;

  • Social welfare service benefits for disabled people, providing free telephone installation, provision of vehicles, provision of carriages and prostheses, rehabilitation services and job creation.

The social security system in Ukraine is financed by social security contributions and by the state and local budgets. Four social insurance funds have been established;(1) the Pension Fund, (2) the Unemployment Insurance Fund, (3) the Fund for benefits for temporary incapacity for work and funeral grants and (4) the Employment Injury Benefits Fund.

These funds receive social insurance contributions and provide benefits and services. Although there are transfers between social insurance funds and the state budget, these funds are managed separately. Benefits and contributions are tax exempt in Ukraine.

As for health insurance, currently Ukraine does not implement a contributory national social health insurance scheme. The Law on the Fundamental Principles of Ukrainian Legislation on Health Protection stipulates that the state will create conditions for efficient and affordable medical care for each individual. The state and communal medical facilities provide free medical care and social services necessary for the maintenance of health, medical and sanitary assistance, with free choice of doctors, and medical facilities.