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Головна Legal advice Material assistance for quarantine

Material assistance for quarantine

On 4 December 2020, the Verkhovna Rada of Ukraine adopted the Law “On social support for insured persons and economic entities for the period of restrictive anti-epidemic measures introduced to prevent the spread of acute respiratory disease COVID-19 caused by SARS-CoV-2 coronavirus in Ukraine”.

The law provides for a one-time financial aid of 8,000 UAH to:

– employed persons who have lost part of their wages because of the quarantine;

– individual entrepreneurs who have lost part of their income due to quarantine.

In order to receive assistance, the employed person must be an employee of a company engaged in activities that are restricted during the quarantine period.

Employees will receive assistance if their employer (as well as FLPs) has one of the 6 Classifier of Economic Activities categories:

  • 47 – retail trade (except trade in motor vehicles and motorbikes);
  • 55 – temporary accommodation;
  • 56 – activities for the provision of food and drink;
  • 59.14 – movie screenings;
  • 90 – creative, arts and entertainment activities;
  • 93 – sports, recreation and entertainment activities.

One of the 6 CCEA categories must be declared first in the registration information as of 31.10.2020.

Employees of the following companies are not eligible for the assistance:

– those who did not contribute the SSP for the third quarter;

– if their company’s activities are not restricted for the duration of the quarantine;

– if they work part-time or if their average salary exceeds 30,000 UAH per month.

Individual entrepreneurs will not be able to receive the assistance if:

– they were registered less than three months before the law came into force;

– have paid the SSU for themselves for less than three months in 2020;

– their type of activity does not fall under quarantine.

In addition, the Act provides for the provision of a one-off financial aid to companies for the payment of employees so that they are not made redundant during the quarantine period. This rule applies to businesses which (at the time of entry into force of the Act) have had to reduce or may reduce the working hours of employees due to downtime in connection with the implementation of restrictive anti-epidemic measures.

The amount of aid is calculated in proportion to the employee’s reduced working hours, but cannot exceed 8,000 UAH.

Payments are made on the basis of applications submitted electronically by individual entrepreneurs through the Single State e-Services Web Portal “Diia”.

The application for a one-off financial assistance for insured persons must state:

  • surname, first name, patronymic (if any), date of birth, taxpayer registration card number or series (if any) and passport number (for individuals who, due to their religious beliefs, refuse to accept the taxpayer registration card number and have officially notified the relevant supervisory authority and have a note in their passport);
  • residence address;
  • confirmation of the insured person’s compliance with the provisions of the Act;
  • bank account number for aid disbursement – according to the IBAN standard.

Funds for this payment will be transferred by the Pension Fund according to lists provided by the Ministry of Digital Transformation of Ukraine.

According to the law, the Pension Fund submits payment lists to the bank authorized by the Cabinet of Ministers to make payments. The latter transfers the funds to the insured persons no later than the next operational day after they are received.

The payment must be received in the bank account (IBAN format) indicated in the application of the insured person.

In order to receive a one-off financial aid, individual entrepreneurs need to submit to the regional employment services an application and statements in the form prescribed by the CMU, including in electronic form via “Diia”.

The decision to pay or not to pay will be taken by the regional employment services. They will also make the payments.

The Law also provides for:

– including in the person’s insurance record the period during which the insured person received a partial unemployment benefit assigned for the period of quarantine;

– avoid applying during and after the quarantine period the rule regarding the suspension and revocation of retail liquor licenses in the event of late payment of the regular license fee by licensees;

– cancellation of the collection of rent under lease agreements for state and municipal property during the period of quarantine or of the restrictive measures for business entities whose activities were prohibited during that period;

– in order to prevent a reduction in the wage coefficient during the calculation of their pensions, allow individual entrepreneurs to make additional payments up to the minimum insurance contribution for the months of partial reduction in income during the quarantine period.

– for business entities whose operations have been temporarily suspended as a result of the imposition of restrictive measures, to extend for the period of quarantine and restrictive measures and, within one month from the date of its termination, the validity of leases of state and municipal property whose term ends during the period of quarantine or restrictive measures;

– temporarily, for the duration of the quarantine and for six months after its termination, provide state support to small and medium-sized enterprises of the catering sector.

The specific procedure for providing the payments envisaged in the draft law should be determined by the Cabinet of Ministers of Ukraine, as should the list of main activities that are affected by the anti-epidemic measures.