The Single Social Contribution as an Efficient Instrument to Ensure Revenues in the State Social Insurance System

Abstract

The article is aimed at researching the status of introduction of the single social contribution (SSC) in Ukraine, evaluating its efficiency, identifying problematic issues and ways to improve the system of charging the SSC. The system of single contribution for the State compulsory social insurance specially plays a significant role in financing the social sphere of Ukraine. Efficiency of the national social protection system depends on the timely receipt of insurance contributions. The authors consider the essence of the single contribution to the State compulsory social insurance, efficiency of introduction of the single contribution rates, carry out an analysis of the status of arrears in the payment of the SSC in Ukraine and, in particular, in the Vinnytsia region, as well as factors that cause such situation. The analysis identifies a number of issues that require immediate solutions. The main ones are the high burden on the Fund of economic entities’ wages. It is substantiated that this state of affairs inevitably leads to the formation of arrears in the payment of SSC. The ways of improvement of the legislation on payment and accrual of the SSC are provided, a radical reforming of the mechanism for administration of the SSC is proposed.

Keywords

• single social contribution
• the State compulsory social insurance
• Pension fund of Ukraine
• legalization