Key Information for the Business: New Regulations regarding the Employment of Disabled Individuals

The Verkhovna Rada is introducing new support initiatives for the employment of people with disabilities. These initiatives aim to increase the employers’ accountability for failing to meet the established disability employment quotas, and to introduce an updated system for paying relevant contributions. 

In February 2025, the President signed the Law of Ukraine No. 4219-IX, titled “On Amendments to Certain Laws of Ukraine on Ensuring the Rights of Persons with Disabilities to Work”, dated 15.01.2025 (Law No. 4219, Draft Law No. 5344-д of 18.11.2022), which amends the provisions of the Law of Ukraine No. 875-XII, titled “On the Fundamentals of Social Protection of Persons with Disabilities in Ukraine”, dated 21.03.1991.

The article reviews the main provisions of the new legislation and their impact on employers.

These are the current norms in force before the 2025 amendments

In the past, and in 2025, employers were required to hire a certain percentage of people with disabilities, depending on the size of their average number of full-time employees that year:

1. 8 to 25 employees — one person with a disability
2. More than 25 employees — 4% of the average number of full-time employees.

Previously, employers had to provide this information in the 10-POI report. However, following the cancellation of this report, compliance with the standard is now automatically verified using data from the registers and submitted payroll reports. Information on accrued sanctions is now displayed in the insured person’s account on the Pension Fund of Ukraine portal.

Changes provided for by the new procedure

From 1 January 2026 onwards, the standard for the employment of disabled people will be calculated on a quarterly basis rather than annually. These new requirements will apply to legal entities and individual entrepreneurs.

Size of the norm:

• 1 workplace — for entities with 8 to 25 employees.
• 4% of jobs — for entities with more than 25 employees (2% for healthcare facilities and some others*).

*One of the innovations is that the standard for healthcare institutions, rehabilitation centres and organisations involved in training or caring for people with disabilities has been halved, setting it at 2% of the average number of full-time employees.

More significant changes:

• The standard may be halved for the employment of persons with Group I or II disabilities, such as visual impairments or mental health conditions.
• Positions involving difficult, harmful or dangerous working conditions are excluded from the standard.
• The employer may fulfil their obligation under the standard by employing a disabled person on an internship basis.

Quarterly contribution to support the employment of persons with disabilities in case of failure to meet the standard

Rather than facing one-off penalties each year, employers will now be able to pay a quarterly contribution in the event of non-compliance. 

The amount of the contribution will be: 

40% of the average monthly salary for each unoccupied position (50% of the specified amount for the period of martial law).

In other words, employers that do not meet the employment standard for persons with disabilities will face administrative and economic sanctions (AES). From 2026 onwards, these sanctions will be cancelled, but a targeted contribution to support the employment of disabled people will be introduced instead.

Thus, an entity will have a choice, either:

• to employ people with disabilities and provide them with a workplace (if required);

or

• to pay a targeted contribution to the Fund for Social Protection of Persons with Disabilities if the employment of such persons is impossible (e.g. due to a high occupational risk or the absence of a specialised workplace that the company is unable to provide, such as ramps, specialised equipment, adapted furniture, appliances, etc.).

Below are three key nuances related to such a targeted contribution:

1. Unlike the AES, this contribution will have to be paid by budgetary institutions financed by state or local budgets.
2. During martial law and until the end of the quarter in which it is cancelled, the contribution amount will be 50% of the base amount.
3. The contribution will be calculated on a quarterly basis.

Here is the formula for calculating the contribution:

Contribution = the product of the following indicators:

• 40% of the average monthly salary (remuneration) per employee in the relevant calendar quarter
• the number of months in the quarter
• the difference between the established norm and the average number of full-time employees with disabilities (i.e. the norm achieved) for the quarter, considering the remuneration requirements.

In this case, the amount of the contribution is calculated based on the relevant quarter’s indicators.

It is also worth emphasising that the norm will be considered met only if an employee with a disability receives a salary not lower than the minimum wage.

Please note that, during the period of martial law in Ukraine and until the last day of the final month of the quarter in which martial law is terminated or cancelled, the contribution amount to support the employment of disabled people will be set at 50 per cent of the standard amount.

However, not all employers will be required to pay the contribution. So who is exempt from paying it?

The contribution will not be paid by employers who have:

1. The average number of full-time employees on the payroll in a calendar quarter is less than eight
2. The average number of full-time employees on the payroll in a calendar quarter is 8 or more, and they have fulfilled their obligation to provide jobs for people with disabilities in this quarter
3. Diplomatic missions and consular offices of foreign countries.

Deadlines for submitting reports and paying the fee

The amendments stipulate that employers must calculate this contribution independently and report on the calculation and payment. Reports must be submitted within the time limits established for reporting on the unified social contribution (USC), and payments must be made within ten calendar days of the deadline for submitting such reports.

It is also worth noting the discrepancy between the established base period for payment of the contribution (quarterly) and the frequency with which USC reports are submitted, which, starting from January 2025, will be monthly. As there is still time until 2026, we hope this issue will be resolved at the legislative level.

Under the new regulations, the NGOs will be required to pay contributions to ensure the social protection of persons with disabilities and to finance their vocational training. Additionally, the list of entities eligible for state support has expanded to include entities with protected employment providing jobs for disabled people with complex health conditions.

Thus, the source of funding for the Fund for Social Protection of Persons with Disabilities will be:

1. Contributions from employers.
2. Fines and penalties for violations of the contribution payment procedure.
3. Charitable contributions and other income.

The contributions (as well as fines/penalties for non-payment) must be paid into accounts opened with the State Treasury.

Liability for violation of the requirements is provided for by law 

The law provides for strict liability in the event of a violation of the established norms:

1. In case of non-payment or late payment of the contribution, a fine of 7% of the unpaid amount will be imposed
2. If the Pension Fund of Ukraine makes additional contributions, a fine of 10% of the additional contribution amount will be imposed for each quarter, up to a maximum of 50% of the total additional contribution amount
3. A fine of ten tax-free minimum incomes (UAH 170) will be issued for failing to submit reports.

The law No. 4219 also provides for other key changes:

• In the event of refusal to conclude an employment contract or transfer to another position (promotion), the employer must inform the disabled person of the reasons for the refusal.
• If necessary, employers must adapt workplaces to be accessible for persons with disabilities (e.g. by purchasing equipment or reducing duties) at their own expense, at the expense of the state fund for the social protection of persons with disabilities, or from other sources not prohibited by law.
• An employer with an employee with a disability due to an accident or occupational disease must ensure their return to work and take all necessary reasonable accommodation measures within four months of being notified of their readiness to start work, or of their actual return. If these obligations are not met, the employer must compensate the employee for lost earnings at three times the enterprise’s average salary for the entire period of non-compliance, but no more than six months.

Control over the payment of contributions

• The State Labour Service will verify instances of non-compliance with the employment standards for people with disabilities.
• The Pension Fund will verify the accuracy of the contribution calculation and payment by conducting documentary checks.

If the employer does not calculate or incorrectly calculates the contribution, the territorial authorities will calculate the contribution based on documentary verification of its correct calculation and payment. This means that a new type of employer inspection is emerging: the Pension Fund will have the right to conduct documentary inspections of contributions for the unemployment of disabled people.

Effective date of the amendments

The new procedure will come into effect on 1 January 2026, giving employers a transitional period to prepare for and adapt to the changes. During this time, the relevant bylaws will be developed to regulate the calculation of the standard and the payment and reporting of contributions.

Conclusions

1. The norm ratio will be calculated based on the results of each quarter rather than the calendar year.
2. Instead of applying penalties, a mechanism is to be introduced whereby a mandatory contribution will be paid to finance social protection measures and vocational training for people with disabilities.
3. For certain categories of employers, the standard will be reduced from 4% to 2%.
4. Reporting on compliance with the standard will become quarterly instead of annual, requiring proper accounting and the timely submission of relevant information.
5. The contribution amount will be calculated based on the average monthly salary.
6. In the event of non-payment of the relevant contribution, the Pension Fund of Ukraine will impose penalties and fines.
7. During the period of martial law, a reduction factor of 50% will be applied when determining the contribution amount.
8. The Pension Fund of Ukraine will be granted expanded powers to ensure the correctness of calculations and the timely payment of contributions, as well as the accuracy of submitted reports.
9. The new procedure will come into force on 1 January 2026. By this date, the Bank is expected to have developed and approved bylaws specifying the mechanisms for implementing the updated requirements.
10. Businesses should analyse their human, organisational and financial resources to determine whether employing persons of the relevant categories is feasible, or whether it would be more appropriate to pay the contribution.
11. Taking a proactive approach to planning and implementing appropriate organisational solutions will help minimise potential risks, ensure the stability of business operations, and maintain the company’s competitiveness in the face of the new regulatory approach.

We recommend the business to consider the above changes when planning their future activities and reviewing their HR policies to ensure compliance with the updated legislation.

At BDO in Ukraine, we offer payroll and HR administration services that combine international experience with an understanding of the Ukrainian market and legislation specifics. We effectively manage all aspects of HR processes, from drafting employment contracts and maintaining HR documentation to payroll and preparing mandatory reports for government agencies.

Our experts also provide advice on labour law matters, helping you to optimise your operations and ensure compliance with all legal requirements. If your company requires professional assistance in this area, please do not hesitate to contact us.