Ukrainians are in for a new pension reform: how much will have to be deducted from salaries.

The Cabinet of Ministers of Ukraine has developed a pension reform that provides for deductions from salaries.

According to the draft "On Compulsory Accumulative Pension Provision", developed by the Ministry of Social Policy, employees and employers must pay a mandatory contribution to state or non-state pension funds.

The draft provides for a reduction in the Unified Social Insurance Contribution from 22% to 17% in the first year, 16% in the second year, and 15% from the third year onwards.

Employees are required to pay a mandatory accumulative contribution, which will gradually increase, and they can also refuse to pay an additional contribution or resume its payment at the employer's request.

Employers will pay a mandatory accumulative contribution, which will depend on the accumulation base for the contribution over the years.

Self-employed individuals are also required to pay an accumulative contribution according to an established scheme.

Employers and the self-employed must pay the accumulative contribution simultaneously with the unified social contribution, and failure to make these payments may result in a fine.

The accumulative contribution is calculated from all types of employee payments and is not considered a tax.

Participants in the system must choose an institution for accumulative pension provision before starting to pay accumulative contributions. A State Accumulative Pension Fund will also be established for individuals who have not chosen another institution.