18:55 25.10.2019

Trade unions demand from govt to settle problem of paying single social security tax for employees of some enterprises in Luhansk region

2 min read

KYIV. Oct 25 (Interfax-Ukraine) – Trade unions have called on the Cabinet of Ministers and tax bodies to settle the problem of paying the single social security contribution for employees of some enterprises in Luhansk region.

"Some enterprises in the region have difficulties with single social security contribution payments associated with two major problems. The first is the seizure of enterprise accounts for various reasons, the second is the non-payment of single social security contributions due to lack of salaries for coalmine workers," Chairman of the Federation of Trade Unions in Luhansk region, Chairman of the trade union committee of PJSC Severodonetsk Azot Association Valeriy Chernysh said at a press conference at Interfax-Ukraine in Kyiv on Thursday.

He said that the problem with blocking single social security contribution payments, which has been a matter of concern for a considerable time, arose due to non-regulation in the law. Companies which accounts are seized for a number of reasons (including the Severodonetsk Azot Association, OJSC Rivneazot and JSC Luhanskgaz) make single social security contribution payments through third parties – under a guarantee agreement. However, despite the decision of the Supreme Court to recognize such payments, fiscal authorities regard them as unlawful. In connection with this, payments are not received by the Pension Fund, Social Insurance Fund, and employees' seniority is not recorded and sick leaves are not paid.

According to Chernysh, it is necessary to amend the law on national social insurance, as well as the law on levying and accounting of single social security contributions.

"An exception should also be made and, in accordance with the decision of the Supreme Court, a resolution of the Cabinet of Ministers should allow the recognition of single social security contribution payments through a third party for the period until amendments to the legislation are introduced," he said.

In turn, Deputy Chairman of the Federation of Trade Unions of Ukraine, Chairman of the Board of the Social Insurance Fund of Ukraine Volodymyr Sayenko noted the need to create a working group of representatives of employers, trade unions, tax authorities, and the government to solve the problem.

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