Ukrainian government plans to merge its social benefits fund with its deficit-laden state pension fund could risk a reduction in – or even an end to – workplace sickness and incapacity benefits, policy analysts and union leaders are warning.
“This merger will not lead to better social protection for Ukrainians, but more likely a reduction in it,” said Nataliia Lomonosova, a social policy analyst at Ukrainian think tank Cedos.
The plan, already approved by parliament and now set to be signed into law by president Volodymyr Zelenskyi, is to merge Ukraine’s social insurance and pension funds, in an effort to deal with a serious shortfall in the social insurance fund and streamline the administration of welfare paymentshas been criticised, especially by trade unions in Europe and elsewhere.
