DRC`s Legal Alert: Issue 112| 1 November – 31 December 2024

1. Law on State Budget for 2025

On 11 November 2024 the Parliament approved Law on State Budget for 2025. The principal numbers and budget lines related to the social protection of the population are considered in the following analysis:

The minimum wage is the legally established minimum level of remuneration for unskilled labor below which an employer cannot pay for a full month of work. Its amount is determined annually considering inflation level, state incomes, average salary amount etc. The subsistence minimum is a cost estimate of the consumer basket, which includes basic human needs (food, non-food products, services) to ensure a minimum standard of living. Both the minimum wage and the subsistence minimum are set annually by the Government of Ukraine in the State Budget Law.

The subsistence minimum and minimum salary in Ukraine in 2025 remain unchanged. Since most social benefits are tied to the subsistence minimum, which did not change in 2025, many of them remained at the same level.

The amount of state social assistance to low-income families is determined based on following percentage of the subsistence minimum for the main social and demographic groups of the population:

The Percentage of the subsistence minimum for the purpose of calculation of the assistance to low-income families has been increased for 5% (from 55% to 60% for able-bodied persons and from 140% to 145% for children).

Pension provision: According to the Pension reform by 2028 since 1 January 2025 started another required insurance period increases by 12 months annually until 2028. Thus, in 2025, the following persons will be eligible for an older adults pension:

Analysis of some budget lines of key ministries related to the Social Protection:

¹From 3 December 2024 the Ministry of National Unity, Decree of the Cabinet №1366, Link: https://zakon.rada.gov.ua/laws/show/1366-2024-%D0%BF

According to the Ministry of Social Policy, priorities for 2024 are aimed to provide support to Ukrainians in difficult life circumstances, to restore their ability to achieve economic independence, and to make social assistance more targeted.

2.The Cabinet Introduced New Approach to Calculate Average Monthly Income

Background information: The majority of social assistance in Ukraine are means-tested. This means that the level of average monthly total income of the household is the main eligibility criteria for receiving social assistance such as assistance provided to low-income families, subsidies for housing and utilities as well as assistance to IDPs.

Recent developments: On 20 December 2024, the Cabinet adopted Decree №1467, amending approach to calculate average monthly total income of the household that is calculated for the purpose of evaluating the eligibility for social assistance.

Such an amendment facilitates access to the social assistance through the just calculation of the factual income.

²According to the amendments, introduced by the Verkhovna Rada on 4 December 2024, law №4113 “On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine to Stimulate the Development of the Digital Economy in Ukraine”, link: https://zakon.rada.gov.ua/laws/show/4113-20#Text

3.Ukrainians on Occupied Territories Can Continue Paying Unified Social Contribution (USC)

Background information: The USC is a consolidated insurance contribution in Ukraine.  In general, this contribution is required to enable insured persons to receive pension payments, as well as social assistance in the event of unemployment, illness, and other cases preventing individuals from work. The payment of the USC is one of the conditions for including periods of work in the insurance period for calculating the amount of retirement pension and other social benefits.

Recent developments: On 20 December 2024, the Cabinet introduced Decree №1496, adopting the mechanism for exercising the right to voluntarily pay a USC for persons who live in the occupied territories in order to get required insurance period and participation in the pension insurance system. To proceed with payment of USC the person needs to:

1. Submit an application for voluntary participation in the mandatory state social insurance system to the Ukrainian tax authority, either in paper or electronic form.
2. Conclude an agreement with Pension Fund for voluntary participation in the mandatory state social insurance system. The agreement must be concluded within 30 days following the receipt of the application.

Fulfil their commitments, including:

• accrue, calculate and pay the USC in a timely manner and in full;
• submit reports proving the calculated and paid amounts of the USC to the tax authority as per terms and procedure established by the Tax Code of Ukraine.

4.“Warm Winter” Benefits

On 26 November 2024, the Cabinet adopted Decree №1341, introducing one-off financial assistance for the following categories of persons:

• Children from low-income families who are recipients of state social assistance to low-income families in November 2024 and who has not reached the age of 18 as of 1 November 2024;
• Children registered as internally displaced people (IDP) who has not reached the age of 18 as of 1 November 2024;
• People with disabilities of group I among IDPs.

One-off financial assistance is provided in the amount of UAH 6,500 per person. The amount of the one-off financial assistance is not included in the calculation of the average monthly total income of a family (household) for the purpose of allocating all types of means-tested state social assistance and housing subsidies.

5.Priority Right of Certain Categories of IDPs to Receive Compensation for Destroyed Housing

Background information: On 4 December 2024 the Parliament adopted Law №4114-IX, amending certain laws regarding the priority right of certain categories of internally displaced persons (IDPs) to receive compensation for destroyed housing. According to the amendments, IDPs may get compensation for damaged/destroyed housing at the expense of budgetary funds of Ministry of Social Policy, in accordance with the criteria, conditions and procedure determined by the Cabinet of Ministers.

Recent developments: On 13 December 2024 the Cabinet adopted Decree №1432, amending the procedure of compensation to IDPs for damaged/destroyed housing.

Eligibility criteria:

• IDP status;
• Difficult life circumstances.

Compensation is granted for destroyed housing in respect of which the authorised body has already approved a decision to grant compensation.

NB: de facto everyone, whose housing is destroyed due to war can be considered as eligible category, because:

1. All people whose housing has been destroyed due to war are eligible to IDP status.
2. Difficult life circumstances are, among others, caused by the damage caused by fire, natural disaster, catastrophe, hostilities, terrorist act, armed conflict or occupation.

Following this logic all the persons whose housing is destroyed can potentially be considered as IDPs who are in difficult life circumstances.

6.Registration of Damage to Non-Property Rights of Individuals

On 20 November 2024, the Parliament adopted Law №4071-IX, establishing the system of recording the information on damage to personal non-property rights³ of individuals as a result of war. The system is aimed at collecting information on damage to personal non-property rights caused since 19 February 2014 to citizens of Ukraine, foreigners and stateless persons legally residing in the territory of Ukraine. The damages include, among other issues, cases of:

³ Personal non-property rights refer to the equitable civil right that has no economic nature of origin and economic content, and is aimed at satisfying physical (biological), spiritual, moral, cultural, social or other non-property needs (interests). 

The information is currently collected in order to:

• Provide affected people with information, which they can use, in particular, to protect their rights and legitimate interests in the manner prescribed by the legislation of Ukraine;
• Determine the necessary types and scope of measures to support affected people;
• Provide information support of state bodies, in particular for taking measures to support affected people;
• Provide information necessary to commemorate the memory of the affected people.

The accumulation of information on damage to personal non-property rights will ensure that victims can apply to the international compensation mechanism (RD4U⁴) and/or other international judicial bodies.

The Cabinet of Ministers is expected to prepare separate legal act on support for people whose personal non-property rights have been damaged as a result of war.

7.Legal and Social Protection of Survivors of War-Related Sexual Violence

On 20 November 2024 the Verkhovna Rada adopted Law №4067-IX, introducing legal and social protection of survivors of war-related sexual violence, as well as ensuring access to urgent interim reparations.

⁴The Register of Damage Caused by the war (Register of Damage for Ukraine - RD4U) serves as a record of claims submitted by individuals, entities, and the State of Ukraine for compensation for the damage, loss, and injury caused by the war. The Register also retains the supporting evidence for these claims. The Register is responsible for receiving and processing claims and related evidence. This includes categorising, classifying, and organising the claims based on certain criteria. Link to the source: https://rd4u.coe.int/en/home

8.Comprehensive Electronic Public Service to (Ex)Military Personnel and Their Family Members

On 10 December 2024, the Cabinet adopted Decree №1401, launching pilot project on a comprehensive electronic public service to provide state support to military personnel, persons discharged from military service and their family members through the Diia Portal⁵.

The purpose of the pilot project is to simplify the mechanism for military personnel, persons discharged from military service and their family members to exercise their rights to protection established by law.

⁵The Unified State Web Portal of Public Services of Ukraine. In Ukrainian: “Єдиний вебпортал державних послуг України”

The Diia Portal provides possibility to select the electronic public services needed, and to form and submit a single application for the selected services. The provision of a comprehensive service is carried out on the basis of:

• Application generated by means of the Diia Portal;
• Originals of electronic documents, electronic copies of paper documents and/or information necessary for the provision of the relevant services.

This Legal Alert is produced thanks to the financial support of the European Union.

Some of the terminology used in this issue of the Legal Alert was taken from draft laws or current legislation. The contents of this brochure are the sole responsibility of the author/authors. The views expressed herein should not be taken, in any way, to reflect the official opinion of the European Union or the Danish Refugee Council (DRC). Neither the European Commission nor DRC is responsible for any use that may be made of the information it contains.