Legal Innovations: Compensation for the late wage payment

On February 26, 2021, Amendments to the Law of Ukraine "On Compensation to Citizens for Loss of a Part of an Income Due to Violation of the Terms of Their Payment" entered into force. Thanks to updates, the list of the types of income for which compensation will be paid is expanded, as well as the sources of compensation payment are changed.

In the previous version of the Law, incomes were considered to be money incomes of citizens, which are repeatedly received on the territory of Ukraine. The law did not have an exhaustive list of types of income, but was very concise: 1) pensions; 2) social benefits; 3) scholarships; 4) wages (cash security), etc.

In the amended version, the definition of income has not changed, but the list income types is now supplemented and exhaustive:

  • pensions or monthly lifetime allowance (including allowances, increases, supplementary pensions, targeted cash benefits, pensions for special services to Ukraine and other pension supplements established by law);
  • social benefits;
  • scholarships;
  • wages (cash security);
  • the amount of indexation of monetary income of citizens;
  • the amount of compensation for damage caused to an individual by injury or other damage to health;
  • amounts paid to persons entitled to compensation in case of loss of a breadwinner.

Sources of compensation have also changed. From now on, compensations are paid by the Social Insurance Fund of Ukraine (SIFU), formed after the merger of the Social Insurance Fund for Accidents at Work and Occupational Diseases and the Social Insurance Fund for Temporary Disability. The SIFU began operations on August 1, 2017.

Employers of all forms of ownership, as well as the Pension Fund of Ukraine, the SIFU, the Fund of Obligatory State Social Insurance of Ukraine in the event of unemployment, etc., are obliged to pay wages, pensions, social benefits, scholarships and other income on time and in full. But they usually forget or pretend to forget that this legal requirement obliges them to pay compensation for the loss of part of this income due to its late payment.

Social benefits should mean assistance to families with children; state social assistance to children with disabilities from childhood and children with disabilities; unemployment benefits; financial assistance during training; retraining or advanced training of the unemployed; temporary disability benefits (including care for a sick child); maternity benefits; monthly amount of money in case of partial or complete disability; that compensates the relevant part of the lost earnings of the victim due to an accident at work or an occupational disease; child support; who has a disability from birth due to an injury at work or an occupational disease of her mother during pregnancy, etc.

So we urge you to know and defend your rights!

If you have any questions about the violation of your rights, call the hotline numbers of the Right to Protection CF. It is open Monday to Friday from 9:00 to 18:00:

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