Breaking News: Mandatory ESD Payments Resume in Ukraine from 2025
Starting January 1, 2025, the voluntary payment of Unified Social Contribution (ESV) will cease to exist in Ukraine, as outlined in the recently passed state budget law. This means the mandatory payment of ESD will resume.
The new rule will affect both self-employed individuals and FOP freelancers operating under the simplified and general tax systems, except for those who have been contributing to ESD for their employees already (22% ESD of the minimum wage per regular employee and 8.41% ESD per employee with disabilities).
Key points to remember:
- Minimum Monthly Payment: 1,760 UAH (22% of the minimum wage)
- Maximum Monthly Payment: 35,200 UAH
The reinstatement of mandatory ESD payments means that all individuals, regardless of their income level or business activity, will be required to contribute, restoring a pre-war norm.
