The maternity leave will be included in the insurance period

The Law of Ukraine dd. May 14, 2013 № 231-VII, amending several laws governing pensions, has entered into force.

"From now on, starting from July 1, the accrual basis of a single social payment includes the amount of benefit due to pregnancy and childbirth. Accordingly, the period of maternity leave will be included in the insurance period. Since prior to the first of July, the payments were not accrued and not paid, this period was not included in the insurance pension record, and this innovation eliminated the legislative gap" – the head of individual income taxation department Igor Kril said.

Social Insurance Fund for Temporary Disability fully fund payments of benefits during pregnancy and childbirth. The additionally accrued single social contribution of 33.2% shall be paid by the employer for its own account and 2% shall be withheld from the employee.   

According to the Tax Code of Ukraine, amounts of benefits in connection with pregnancy and childbirth shall not be included in the total monthly, annual taxable income, and therefore tax on personal income shall not be charged.  All amounts of single social payment charged for benefits in connection with pregnancy and childbirth shall be included into the tax expense of the employer.

The benefit shall be provided to the insured person in the form of financial payments, which compensate for the loss of wages for the period of leave due to pregnancy and childbirth. It shall be paid for the whole period of leave and last 70 calendar days before childbirth and 56 (in the case of complicated childbirth or birth of two or more children – 70) calendar days after childbirth. Women who suffered from the Chernobyl disaster receive the benefit for maternity leave for 180 days of this leave (90 – before the childbirth, and 90 – after the childbirth). The amount of the benefit is calculated in total and is provided to the insured person in full regardless of the number of leave days actually used before the childbirth. The basis for calculation and payment of benefits in connection with pregnancy and childbirth shall be a properly issued certificate of disability. The decision to appoint financial security and to provide social services is taken by the Social Security Commission, formed at the company.

Source – Main Office of the Ministry of Income in Transcarpathian region