Government has allocated UAH 1.75 billion in financial assistance from the state budget to the Social Insurance Fund

UAH 1,750,000 in financial assistance from the COVID-19 Acute Respiratory Disease Response Fund will be used to repay arrears on assistance on sick leave.

The financial aid provided by the Government will allow the Social Insurance Fund of Ukraine (SIFU) to repay most of the arrears on the financing of benefits for temporary disability, as well as for pregnancy and childbirth. It is estimated that the funds will allow making payments to 330,000 insured persons.

The debt has accumulated due to a sharp increase in the number of sick leaves transferred to the Fund for financing in connection with the pandemic. In the first 11 months of this year, Ukrainian workers have spent 36.7 million days in sick leave days paid at the expense of the SIFU, which is by 6.8 million days more than in the same period in 2020, when there was a significant increase due to the spread of COVID-19.

During 2021, the need for expenditures on sick leaves and insurance benefits exceeded the Fund's revenues from the share of SSC (single social contribution). Thus, in November, the excess of the need for expenditures over the actual income from the share of SSC amounted to more than UAH 2.7 billion (taking into account the debt accumulated at the beginning of the month).

Background

The relevant resolution № 1318 "On the allocation of funds for the payment of material support for insurance in connection with temporary disability" was adopted by the Cabinet of Ministers of Ukraine on December 15.