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Parliament Has Supported the Government Initiatives to Intensify the Labour Market and Stimulate Employment

The Verkhovna Rada has adopted government bills aimed at intensifying the labour market and increasing employment among the population. Decisions on the approval of bills 6067 and 5795 were made by MPs today, 21 September. 

“The Government pays special attention to the issue of increasing the employment rate, because due to the war, millions of Ukrainians lost their jobs, because enterprises stopped or were destroyed, many people were forced to move to safer regions and are looking for new jobs there. We have already launched a number of programs stimulating the creation of new jobs and reducing unemployment. In particular, grant programs for business opening and development. We pay compensation to employers for the employment of IDPs. Today’s support of our legislative initiatives by the parliament is another step that will help intensify the situation in the labour market as well as increase tax revenues,” commented Yuliia Svyrydenko, First Vice Prime Minister – Minister of Economy of Ukraine.  

Bill 6067 introduces a number of innovations that will improve the work of the employment service, create new jobs thanks to active programs in the labour market and ensure a decrease in unemployment rate. In particular, incentives are introduced for employers in the form of compensation for the single social contribution or part of wages from the Unemployment Fund for employment to: 

  • young people, in particular, for the first job;
  • participants in hostilities;
  • single parents, parents of children with disabilities;
  • persons 5 years before reaching retirement age;
  • persons with disabilities;
  • long-term unemployed and other vulnerable populations.

In addition, outdated approaches to helping the unemployed find a suitable job are being changed, and the European method of paying unemployment benefits in accordance with insurance principles is being implemented – the longer the pensionable service, the longer the duration and amount of benefits a person receives. It is proposed to involve more unemployed people in public works for the restoration of the country, for which they will receive a higher income than unemployment benefits.

The legislative changes proposed by bill 5795 also regulate a number of issues regarding the work of foreigners and stateless persons in Ukraine. In particular: 

  • proper control over the use of labour of foreigners and stateless persons and the payment of the single social contribution is established by introducing monitoring through electronic exchange of information between different bodies;
  • the State Employment Service is given the right to promptly respond and cancel permits for using the labour of foreigners at the request of law enforcement agencies; 
  • the burden on employers in the case of attracting foreign labour force is decreased by canceling the requirement to pay wages to foreigners in the amount of 5 or 10 minimum wages;
  • the procedure for issuing permits is being improved – this administrative service will become available through administrative service centers. 

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