Unified Social Contribution (USC) for Sole Proprietors in 2026

The Unified Social Contribution (USC) is a mandatory social insurance contribution paid by individual entrepreneurs (FOPs) for themselves. In 2026, the USC rate is 22%, and the minimum contribution is UAH 1,902.34 per month. Paid contributions are taken into account when calculating the insurance record and determining eligibility for certain social benefits.

A FOP must pay USC for themselves unless they have a legal exemption. Below, we explain who must pay the contribution, how to calculate it, and when the payment must be made.

What is USC?

The Unified Social Contribution (USC) is a mandatory social insurance contribution, not a tax. It is paid into Ukraine’s compulsory state social insurance system and is used to finance social insurance benefits.

USC is regulated by Law of Ukraine No. 2464-VI “On the Collection and Accounting of the Unified Contribution for Compulsory State Social Insurance” (hereinafter — the USC Law). The law defines who is required to pay USC, how it is calculated and paid, and when exemptions apply.

Who pays the Unified Social Contribution (USC)?

For FOPs under the simplified tax system, USC payments for themselves are mandatory unless the entrepreneur has a legal exemption. The contribution must be paid regardless of whether the FOP earned income during the reporting period.

FOPs under the general tax system must also pay USC for themselves unless they qualify for an exemption. The amount depends on the USC assessment base, but it cannot be lower than the minimum social insurance contribution for the relevant month.

If a FOP has employees, they pay USC separately for themselves and accrue USC on employee payments as an employer. The USC payment procedure is governed by the USC Law.

USC exemptions

In 2026, FOPs are generally required to pay USC for themselves. However, the law provides for certain cases in which an entrepreneur may be exempt from paying the contribution.

In particular, the following persons are exempt from paying USC for themselves:

1. FOPs who receive an old-age pension or a pension for years of service.
2. FOPs with disabilities who receive a pension or state social assistance. Information about the relevant status and payments is provided to the tax authorities automatically, so there is no need to report it separately.
3. FOPs who are simultaneously employed under an employment agreement, provided that their employer paid USC for the relevant month in an amount not lower than the minimum social insurance contribution. Since October 1, 2025, it no longer matters whether this employment is the person’s primary place of work. In 2026, the minimum social insurance contribution is UAH 1,902.34 per month.
4. FOPs under the general tax system who did not receive income. Their USC assessment base depends on taxable income received, so USC does not have to be paid for months in which there was no income.
5. Mobilized FOPs — for the period of military service in accordance with the special provisions of Law No. 2464.
6. FOPs registered in temporarily occupied territories — in accordance with the special provisions of Law No. 2464 and subject to the conditions established by law.
7. FOPs providing childcare — subject to certain conditions established by Law No. 2464. From January 1, 2026, the rules governing USC payments for such persons were amended, including for those caring for a child under one year of age or taking childcare leave until the child reaches three years of age.

Separate rules also apply to FOPs who were deprived of their personal liberty as a result of Russia’s armed aggression against Ukraine.

How much USC does a FOP pay in 2026?

In 2026, the USC rate for FOPs is 22%. The minimum wage used to calculate the minimum contribution is UAH 8,647. Therefore, the minimum social insurance contribution in 2026 is UAH 1,902.34 per month.

ℹ️ What could the USC amount be in 2027?

The USC amount in 2027 will depend on the indicators approved in the State Budget. On September 15, 2026, the government’s draft State Budget for 2027 was registered in the Verkhovna Rada and is currently being reviewed by the relevant parliamentary committee.

The draft provides for a minimum wage of UAH 9,546 per month. If these figures are approved without changes, the minimum USC at the 22% rate will be:

• UAH 2,100.12 per month;
• UAH 6,300.36 per quarter.

The draft also provides for a maximum USC assessment base equal to 20 minimum monthly wages. Accordingly, the maximum USC may amount to UAH 42,002.40 per month.

How to calculate the unified social contribution (USC)?

The basic USC calculation formula is simple:

The assessment base must not be lower than the minimum amount or higher than the maximum amount established by law.

1️⃣ FOPs under the single tax system (Groups 1–3)

For FOPs under the single tax system, USC for themselves is not calculated as 22% of total revenue. The entrepreneur independently determines the assessment base within the limits established by law.

If a FOP chooses the minimum assessment base of UAH 8,647, the minimum USC is:

8,647 × 22% = UAH 1,902.34 per month.

Therefore, the minimum quarterly USC amount is UAH 5,707.02.

If the assessment base is higher than the minimum, the contribution amount increases accordingly.

2️⃣ FOPs under the general tax system

For FOPs under the general tax system, the USC assessment base is linked to net taxable income, not the entrepreneur’s total revenue.

The calculation must take into account the actual net taxable income as well as the minimum and maximum USC assessment bases. Therefore, the exact contribution amount under the general tax system should be determined based on these indicators.

If you need to calculate USC quickly, use the Vchasno tax calculator.

When to pay USC in 2026

FOPs pay USC for themselves quarterly. You may also make monthly payments, but it is important not to miss the quarterly payment deadline.

How and where to pay USC

After calculating the USC amount, check the current payment account details. They depend on the FOP’s place of tax registration, so before each payment, make sure you are using the correct account details.

You can check the current payment details and pay USC using Vchasno Zvit. If you pay USC online, check the amount, account details, and payment purpose before confirming the transaction.

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 1 360.

In addition, administrative fines may be imposed in accordance with Article 165¹ of the Code of Administrative Offenses, ranging from UAH 680 to UAH 5 100, depending on the amount of the violation and its recurrence.

Reporting

FOPs report USC accrued for themselves in Appendix 1 to the single tax payer’s tax return: FOPs in Groups 1–2 submit it as part of their annual return, while FOPs in Group 3 submit it as part of their Q4 return.

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.