Concerning Changes On Single Social Charge In Ukraine

On December 28, 2014 the Law of Ukraine no. 77-VIII "On Amending Certain Legislation Acts of Ukraine to Reform Mandatory State Social Insurance and Legalization of Payroll," was adopted. The Law came into force from January 1, 2015 ("Law 77"). Law 77 restated the Law of Ukraine "On Mandatory State Social Insurance" and introduced a "simplification" of single social charge ("Single Social Charge") by stipulating that from January 1, 2015 the rate of the Single Social Charge shall be decreased (coefficient 0.4 to be applied to the existing rate), if a company complies simultaneously with the following criteria:

1. Total basis for accrual of the Single Social Charge exceeds 2.5 times or more than the average monthly basis for accrual of the Single Social Charge in 2014.