On 13 January 2009, several changes to payroll taxes came into force.

Employers must now pay an amount equal to:

  • 1.6% of monthly salaries to the Unemployment Fund
  • 1.4% of monthly salaries to the Temporary Disability Fund
  • between 0.56% and 13.5% of monthly salaries to the Accident Insurance Fund, depending on the trauma risk level attributable to a particular industry sector
  • 2.2% of the value of any civil law contract entered into with an individual to the Unemployment Fund

Employees (including foreign employees) must now pay:

  • 0.6% of their monthly salary (up to UAH 10,035) to the Unemployment Fund

The monthly cap for payroll taxes in 2009 per employee is UAH10,035 (c. €950 at current rates), thus, no payroll tax applies on any monthly salary in excess of the cap.

Law:

  • Law of Ukraine "On Insurance Tariffs on Obligatory State Social Insurance against Accident at Manufacture and Professional Disease resulted in Disability" No. 2272-III dated 22 February 2001
  • Law of Ukraine "On Amount of Payments for Certain Types of Obligatory State Social Insurance" No. 2213-III dated 11 January 2001.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

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The original publication date for this article was 22/01/2009.