Unified Social Contribution (USC) for sole proprietors: how to calculate and pay in 2025

From January 1, 2025, individual entrepreneurs under the simplified taxation system returned to the mandatory payment of the unified social contribution (USC). This marks the end of the preferential period that has been in effect since March 2022. In this article, we explain what entrepreneurs need to know about the USC in 2025.

What is the Unified Social Contribution (USC)?

The Unified Social Contribution (USC) is an insurance contribution that provides funding for the social protection system in Ukraine. This tax is a mandatory and regular payment for all participants in the social protection system.

The USC is not part of the taxation system and is regulated by a separate Law of Ukraine No. 2464-VI «On the Collection and Accounting of the Single Contribution for Compulsory State Social Insurance» (hereinafter referred to as the Law «On the USC»). The funds from the payment are used to finance the following types of social insurance:

• pension insurance;
• unemployment insurance;
• insurance in connection with temporary loss of working capacity;
• insurance against industrial accidents and occupational diseases.

Who pays the Unified Social Contribution (USC)?

According to Article 4 of the Law «On the USC» in 2025, the Unified Social Contribution shall be paid by:

1. Employers, regardless of their form of ownership, type of activity, and economic management, who are insurers and are required to pay the USC for their employees.
2. Military units and bodies that pay monetary allowances — for military personnel, police officers, rank and file and senior personnel, as well as persons undergoing compulsory military service in the Armed Forces of Ukraine, other military formations, the Security Service of Ukraine, the Ministry of Internal Affairs, civil protection bodies and units.
3. Self-employed persons who pay social security contributions both for employees and for themselves:
   • Individual entrepreneurs, in particular those who have opted for a simplified taxation system (except for e-residents);
   • Persons who carry out independent professional activities (medical, legal, artistic, etc.) and receive income from them;
4. Members of farming enterprises for themselves, if they do not belong to persons who are subject to insurance on other grounds.
5. Persons who voluntarily participate in the compulsory state social insurance system. Persons who are exempt from paying unified social contribution for themselves may also pay contributions voluntarily.

From 2025, the exemption that allowed entrepreneurs not to pay unified social contribution for themselves from March 1, 2022, is suspended. The changes are enshrined in paragraph 3 of the Final Provisions of the Law of Ukraine «On the State Budget of Ukraine for 2025».

Benefits from paying social security contributions

Even after the general benefit was abolished, some categories of sole proprietors retain the right not to pay unified social contributions for themselves:

1. Sole proprietors with disabilities who receive:
   • disability pension from the Pension Fund of Ukraine (exemption applies automatically);
   • social assistance for disability (requires confirmation from the tax authority).
2. Individual entrepreneurs who are pensioners and receive:
   • old-age pension;
   • length-of-service pension.
3. Individual entrepreneurs who are employees for whom the employer pays social security contributions of at least the minimum amount (UAH 1760 in 2025).
4. Mobilized entrepreneurs for the entire period of service, subject to the submission of supporting documents.
5. Individual entrepreneurs on the general system without income.

According to Article 4 of the Law «On Unified Social Tax» exemption from payment of the Unified Social Contribution is effective from the month following the acquisition of preferential status.

USC rate in 2025

According to the Law of Ukraine «On USC» the rate of the unified social contribution for legal entities and individual entrepreneurs is 22% of the calculation base.

Two USC rates are used to calculate USC in budgetary institutions, state bodies, and local self-government bodies:

Deadlines for paying social security contributions

Individual entrepreneurs pay social security contributions quarterly by the 20th day of the month following the reporting quarter:

If the last day of the payment period falls on a weekend or public holiday, the deadline is moved to the next business day.

Entrepreneurs can also pay the unified social contribution monthly, as long as they comply with the quarterly deadlines.

Liability for late payment of the unified social tax

The following financial penalties are imposed for late payment of the unified social tax:

• 20% of the unpaid amount for late payment or non-payment of the USC;
• A penalty of 0,1% of the amount owed for each day of delay;
• An administrative fine of up to UAH 1360.

In addition, administrative fines may be imposed in accordance with Article 165¹ of the Code of Administrative Offenses, ranging from UAH 680 to UAH 5100, depending on the amount of the violation and its recurrence.

How to calculate the unified social contribution (USC)?

The amount of unified social contributions for sole proprietors depends on the minimum wage. In 2025, it is UAH 8,000. The social security contribution rate for sole proprietors is 22% of the calculation base. Therefore:

• the minimum unified social contribution is UAH 8,000 x 22% = UAH 1,760/month;
• the maximum base for calculating the unified social contribution is UAH 8,000 x 20 = UAH 160,000 (according to the Law of Ukraine «On the State Budget of Ukraine for 2025»);
• the maximum amount of the unified social contribution is UAH 160,000 x 22% = UAH 35,200/month.

In 2025, sole proprietors can independently determine the base for calculating the unified social contribution within the limits between the minimum and maximum (Article 7 of the Law of Ukraine «On the USC»). The amount of the tax depends on the taxation system. Let’s look at some typical examples.

1️⃣ Sole proprietors under the general taxation system

Individual entrepreneurs under the general taxation system pay unified social contribution monthly. The general calculation formula is as follows:

Unified social contribution amount = monthly income x 22%.

For example, for an income of UAH 20 000:

Social security contribution = UAH 20 000 x 22% = UAH 440.

For months in which the individual entrepreneur did not receive income, they independently choose the calculation basis and pay social security contributions between UAH 1760 and UAH 35 200.

2️⃣ Individual entrepreneurs on a single tax (groups 1-3)

Sole proprietors in groups 1-3 pay USC quarterly. For example, for a monthly income of UAH 20 000:

• monthly USC amount = UAH 20 000 x 22% = UAH 440;
• quarterly USC amount = UAH 440 x 3 = UAH 1320.

What are the details for paying USC?

The details for paying USC in 2025 have not changed compared to the previous year. They are individual for each region of Ukraine.

The current details for paying USC in 2025 can be found in the Vchasno.Zvit service directory. Individual entrepreneurs need to specify their registration address, and the service will determine the current details for paying taxes.

Accounting for the Unified Social Contribution

In accounting, calculations with the Unified Social Contribution are reflected in subaccount 651 «Settlements with compulsory state social insurance».

Main entries:

• credit subaccount 651 — accrued liabilities for USC;
• debit subaccount 651 — repayment of debt and payment of advance payments.

Correspondence when accruing social security contributions:

• Debit 23, 24, 91, 92, 93, 94 — Credit 651 (depending on the purpose of the expenses);
• when using class 8 accounts: Debit 821 — Credit 651.

When paying USC:

• Debit 651 — Credit 311 (301) — transfer of USC from the current account.

Reporting

Starting in 2025, sole proprietors submit their USC reports as part of their combined personal income tax and military tax reports. For sole proprietors without employees, the tax service does not require separate reporting on unified social tax. Information on unified social tax is included in the annual tax return.

Individual entrepreneurs with employees submit a tax calculation form F050010 on a monthly basis. Submission deadline: by the 20th day of the month following the reporting month.

Important. Starting in 2026, sole proprietors with employees will be required to submit tax calculations on a quarterly basis. Deadline: within 40 days after the end of the quarter.

How Vchasno.Zvit automates USC payments

The Vchasno.Zvit platform offers a comprehensive solution for automating tax processes. The service provides individual entrepreneurs with the following benefits:

• Automatic tax calculations. The service accurately calculates social security contributions in accordance with current rates and limits, taking into account all tax benefits and features.
• Electronic reporting. Vchasno.Zvit automatically generates and submits reports to tax authorities. All documents are generated in accordance with current legislation.
• Deadline control. The service sends reminders to entrepreneurs about upcoming payment deadlines. This helps to avoid penalties.

Use Vchasno.Zvit to minimize calculation errors, submit reports on time, and conduct business within the framework of current tax legislation.