The Law of Ukraine passed on July 8, 2010, under No.2464, on collection and accounting of single social security contributions defines the full time employment as a place of employment where an employee works under a labour agreement, the employment records containing an entry about job positions and transfers of the latter are kept, with reference to the information made available on the website of the HO of the NFS in Ternopyl oblast.
If the accrual rate applied to computing the monthly contribution is less than the minimum wage, then the accrual basis is defined as the product of the minimum wage and single contribution rate set for particular categories of taxpayers.
Therefore, the company must charge the single fee amount based on the minimum wage. This contribution is deductible from wages (income) of an employee, actual gross wages (income).
Here is an example of calculating and withholding the social security contribution charged on the wage of a person working in the company, with the salary rate of 0.75 (the main place of employment), salary - UAH 1000:
wage in January 2015, paid at the main place of employment, salary rate of 0.75 – UAH 1000.00.
social security contribution withholding:
a single fee calculated at the rate of 36.76% (conventional) amounts to UAH 447.74 (1218.00 x 36.76 percent);
single fee withheld at the rate of 3.6% in the amount of UAH 36.0 (1000.00 x 3.6 percent).
