Minimum single social contribution may rise to 2100 hryvnias per month
The draft state budget for 2027 envisages an increase in the minimum wage to 9546 hryvnias and the subsistence minimum to 3559 hryvnias. These parameters entail the recalculation of a number of mandatory payments for sole proprietors and citizens. This was reported by Судово-юридична газета citing the Verkhovna Rada, according to the portal PromPolitInform.
The draft law on the main state estimate registered in parliament contains basic social indicators for the next year. In particular, the minimum monthly remuneration is proposed at the level of 9546 hryvnias, and the hourly rate should be 57.50 hryvnias.
Basic social standards
The subsistence minimum per person calculated on a monthly basis is set at 3559 hryvnias. For able-bodied citizens, this indicator is determined at 3691 hryvnias, while for persons who have lost the capacity to work, 2878 hryvnias are provided.
Compared to current figures, the increase in the minimum wage will amount to 899 hryvnias, or approximately 10.39%. The subsistence minimum per person is proposed to be increased by 350 hryvnias, which is about 10.91%.
Calculation of the single social contribution
The changes will directly affect the tax burden on business due to the binding of fixed payments to minimum standards. The minimum insurance contribution for self-employed individuals is 22% of the minimum wage.
According to calculations based on the new parameters, the monthly contribution will grow from 1902.34 hryvnias to 2100.12 hryvnias. Over the year, the total mandatory deductions under unchanged conditions will increase to 25,201.44 hryvnias.
Marginal single tax rates
Maximum limits for the first and second groups of the simplified taxation system will also depend on budgetary indicators. The marginal rate for the first group may reach 369.10 hryvnias per month.
For the second group, the maximum monthly payment can reach 1909.20 hryvnias instead of the current 1729.40 hryvnias. However, the final fixed amounts for these categories are traditionally determined by local councils.
Military levy and other indicators
The fixed military levy for the first, second, and fourth groups of single tax payers is calculated as 10% of the minimum wage. According to new proposals, this payment will amount to 954.60 hryvnias monthly.
All the cited parameters are currently only projected figures. The final amounts of payments and tax burdens will be approved by the parliament during the final adoption of the law.
Illustrative photo: Misha Reme / CC BY-SA 4.0
