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Social Security (Minimum Standards) Convention, 1952 (No. 102) - Ukraine (RATIFICATION: 2016)

Other comments on C102

Direct Request

2020
2019

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Ukraine (ratification: 2016)

The Committee takes note of the supplementary information provided by the Government in light of the decision adopted by the Governing Body at its 338th session (June 2020). The Committee proceeded with the examination of the application of the Convention on the basis of the supplementary information received from the Government and the Federation of Trade Unions of Ukraine (FPU), received on 30 September this year, as well as on the basis of the information at its disposal in 2019.

The Committee notes the observations of the Confederation of Free Trade Unions of Ukraine (KVPU), received on 29 August 2019, with respect to the delay and non-payment by employers of social contributions. The Committee requests the Government to provide its comments in this respect.

Part II (Medical care) of the Convention. Application in practice. The Committee takes note of the indication provided by the Government, in its supplementary information, and of the provisions of the legislation that give effect to Part II of the Convention. The Committee requests the Government to provide information on the waiting time for patients to receive medical care benefits, particularly, treatment against HIV-AIDS, tuberculosis and rare or orphan diseases, as well as high technology medical care and palliative care.

Parts V (Old-age benefit), IX (Invalidity benefit), and X (Survivors’ benefit). Benefits to be taken into account. The Committee notes that for the purposes of applying Parts V, IX, and X of the Convention, the Government refers to contributory earnings-related benefits and to means-tested benefits provided under three legal acts, namely the Act on mandatory state pension insurance No. 1058 IV of 2003, the Act on state social assistance to the persons not eligible for pension and persons with disabilities No. 1727-IV of 2004, and the Act on state social assistance to low-income families No. 1768-ІІІ of 2000. The Committee further notes the indication by the Government that the persons protected under Parts V, IX, and X of the Convention, are all individuals whose means during the contingencies do not exceed limits prescribed in such a manner as to comply with the requirements of Article 67 of the Convention. The Committee points out that contributory earnings-related benefits and means-tested benefits cannot be combined for the purpose of applying Parts V, IX, and X of the Convention, respectively. According to the indications by the Government as to the categories of the population protected and the selection of Article 67 of the Convention for calculation of replacement rate, the Committee observes that the benefits that can be considered for the application of Parts V, IX and X of the Convention are those provided under the Act on state social assistance to the persons not eligible for pension and persons with disabilities No. 1727-IV of 2004 (Act No. 1727-IV of 2004) and the Act on state social assistance to low-income families No. 1768-ІІІ of 2000 (Act No. 1768-ІІІ of 2000).

Article 28 (Old-age benefit), 56 (Invalidity benefit), and 62 (Survivors’ benefit), in conjunction with Article 67 and Schedule to Part XI. Replacement rate of benefits. The Committee notes the indication by the Government that persons whose incomes are less than the subsistence minimum determined in accordance with the Act No. 966-XIV of 15 July 1999 on subsistence minimum are entitled to state social assistance according to the Act No. 1727-IV of 2004 and the Act No. 1768-ІІІ of 2000. The Committee notes that in accordance with Article 5 of the Act on the state budget of Ukraine for 2018, No. 2246-VIII of 2017, the amount of state social assistance paid to low income families cannot be more than 75 per cent of the minimum subsistence level for the family. The Committee further observes from the supplementary information provided by the Government, that the level of all social assistance benefits paid in respect of the family of a standard beneficiary which includes a dependent wife and two children, in case of invalidity benefit, and a widow and two children in case of survivors’ benefit, would be less than the level of the total subsistence minimum for the same households determined in accordance with the Act No. 966-XIV of 15 July 1999 on subsistence minimum.

The Committee further observes that, according to Act No. 966-XIV of 15 July 1999 on subsistence minimum, there is a distinction between the legal subsistence minimum and the actual subsistence minimum level. While the legal subsistence minimum is determined annually by the Parliament, depending on the expenditure available from the state budget and macroeconomic and social indicators, the actual level of subsistence minimum is determined monthly by the Ministry of Social Policy based on consumer prices, with a view to monitor the dynamics of living standards in Ukraine.

The Committee notes the Government’s indication that in December 2019, the legal subsistence minimum for persons who have lost their capacity to work was 1,638 Ukrainian hryvnias (UAH). However, as per the data of the Ministry of Social Policy, the actual level of subsistence minimum was UAH3,103 in 2019.

The Committee further notes from the statistical data provided by the Government, that in 2019, 23.1 per cent of the population were living below the absolute poverty line determined as the actual level of subsistence minimum whereas 1.1 per cent of the population had an income lower than the legal level of subsistence minimum. The Committee further observes that 11.4 per cent of the population were living below the relative poverty line determined as 60 per cent of median incomes in 2019. The Committee notes the indication by the Government that some draft laws aimed at improving the methodology for the determination of subsistence minimum are currently before the Parliament. The Government also indicates that annual plans of actions are being elaborated with a view to implement the Poverty Reduction Strategy (adopted by the Decree of the Council of Ministers of 16.03.2016 No. 161-p).

While noting the information provided by the Government, the Committee recalls that benefits provided to all residents subject to a means test, such as the social assistance minimum pension, shall be, in accordance with Article 67 of the Convention, at a level sufficient to maintain beneficiaries and their families in health and decency. Given that the amount of state social assistance benefits is less than the actual level of subsistence minimum, the Committee requests the Government to provide information on any other complementary measure which would ensure that the old-age, invalidity and survivors’ benefits provided in application of Articles 28, 56 and 62, respectively, meet the requirements of Article 67 of the Convention. The Committee further requests the Government to provide information on any legislative developments concerning the determination of the level of subsistence minimum. It also requests the Government to continue to provide data on the absolute and relative poverty lines.

Article 28 (Old-age benefit), 56 (Invalidity benefit), and 62 (Survivors’ benefit), in conjunction with Article 65(10). Adjustment of pensions of civil servants and of certain categories of employees. The Committee notes the FPU’s observations indicating that the Law of 10.12.2015 No. 889-VIII on civil service repealed the previous Law of 16.12.1993 No. 3723-XII that had provided in its section 37-1, the revision of pensions of civil servants according to the changes in their wages. The FPU also indicates that pensions provided under the Law of 10.12.2015 No. 889-VIII on civil service, the Law of 07.06.2001 No. 2493-III on service in local governments, the Law of 14.10.2014 No. 1697-VII on the prosecutor's office, the Law of 17.11.1992 No. 2790-XII on the status of the people's deputy of Ukraine, and the Law of 26.11.2015 No. 848-VIII on scientific and scientific-technical activity are neither revised nor indexed by virtue of section 13 of Chapter XV of the Law of 09.07.2003 No. 1058-IV on compulsory state pension insurance, as amended by the Law of 03.10.2017 No. 2148-VIII. The FPU further points out that although the average wage and the cost of living have increased, respectively, at 5.8 and 4.1 times since 2008, pensions of civil servants and certain categories of employees have not been accordingly adjusted. The Committee requests the Government to provide its comments in this respect.

Part VI (Employment injury benefit). Article 36, in conjunction with Article 65(10). Adjustment of benefits. The Committee observes from the information provided by the Government that for the period 1 January 2016 to 1 January 2018, the level of adjustment of benefits granted in the event of permanent incapacity for work due to employment injury (0.76 points) and survivors’ benefit due to employment injury (0.60 points) was significantly less than the changes in the cost-of-living index (127.49 points) and earnings index (71.50 points). Recalling that the rates of periodical payments in respect of employment injury shall be reviewed following substantial changes in the general level of earnings where these result from substantial changes in the cost of living, the Committee requests the Government to take the necessary measures to ensure the adjustment of employment injury benefits accordingly.

Article 37. Qualifying period. The Committee requests the Government to indicate whether there is a qualifying period for entitlement to employment injury benefits.

Part XIII (Common provisions), Article 71(3). General responsibility of the State for the due provision of benefits. The Committee notes the KVPU’s observations concerning the difficulties regarding the entitlement and payment of pensions to internally displaced persons (IDP). In particular, the KVPU points out that, according to the 2019 amendments to the Decree of the Council of Ministers of Ukraine of 05.11.2014 No. 637, the territorial bodies of the Pension Fund shall verify the applicant’s identity by comparing the obtained information with the Pension Fund’s data, taking into account the data of the Unified Information Database on IDP in accordance with the procedure approved by the Pension Fund in the agreement with the Ministry of Social Policy. The KVPU, however, alleges the absence of such a procedure, which impedes the entitlement and payment of pensions to IDP.

The Committee notes the reply provided by the Government that since 2014, the Pension Fund of Ukraine has not been able to operate in the non-government-controlled area (NGCA) and that all financial transactions, including the payment of social security benefits, have been suspended in the NGCA. The Government also indicates that the entitlement and payment of social security benefits to IDP are regulated by the Law of Ukraine of 2015, No. 1 on ensuring the rights and freedoms of IDP and by the Decrees of the Council of Ministers of Ukraine of 05.11.2014 No. 637 and of 08.06.2016 No. 365. The Government further specifies that data from the Unified Information Database on IDP is used for the entitlement (resuming) and payment of pensions. Such data is updated according to the information received from the law enforcement authorities.

The Committee further notes the information provided by the Government concerning its collaboration with international organizations to address the issue of social security benefits payment to persons residing in both the NGCA and the government-controlled areas (GCA). In this regard, the Government indicates that it is considering with the Red Cross the possibility of transporting persons with limited mobility to the GCAs to ensure the provision of the social security benefits to which they are entitled. Recalling that as per Article 71(3) of the Convention, the State shall accept general responsibility for the due provision of the benefits provided under the Convention, and that it shall take all measures required for this purpose, the Committee hopes that the Government will be in a position to ensure the due payment of social security benefits guaranteed by the Convention to persons residing in the NGCA and the GCAs. The Committee requests the Government to provide information on measures taken or envisaged in this regard.