The Ministry of Social Policy denies information on pension tax
28 January 05:29
The Ministry of Social Policy has stated that the introduction of funded pensions will not involve a tax increase. However, it will be possible to pay an additional voluntary contribution at will. This is reported by the press service of the Ministry, Komersant ukrainskyi informs
On Monday, January 27, the head of the department, Oksana Zholnovych, said that the planned pension reform in Ukraine provides for a mandatory 9% of salary to be deducted for a funded pension. According to her, this will make it possible to increase the size of the future pension.
The Ministry of Social Policy emphasizes that the department has developed a comprehensive pension reform. The relevant draft laws have been submitted to the authorities and other stakeholders for review and suggestions.
The goal of the reform is to create a fair and transparent pension system so that every Ukrainian can receive a decent pension.
The agency noted that the introduction of the funded system, which is part of the reform, will allow employees to further increase the amount of their future pension during their working life.
“Importantly, this will not increase the burden on taxpayers. The employer’s and employee’s contributions will not increase and will be allocated from the current unified social contribution and personal income tax,” the Ministry explained.
The ministry also clarified that employees will be able to pay an additional voluntary contribution at their own request. It is also expected that the introduction of the funded system will increase the pension by another 15-20% compared to the average lifetime salary of a person, in addition to the PAYG part of the pension.