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Subsidies in Ukraine 2023 – How to determine the mandatory payment percentage for the subsidy

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Subsidies in Ukraine 2023 – How to determine the mandatory payment percentage for the subsidy

In Ukraine, due to difficult economic circumstances, many households receive subsidies to pay for housing and communal services. A housing subsidy is assigned to households if there is a difference between the amount of payment for housing and communal services within the limits of social norms and standards and the amount of the mandatory payment, the amount of which depends on the mandatory percentage of the payment. This was reported in the Pension Fund of Ukraine.

Thus, the amount of the mandatory percentage of payment for housing and communal services is determined for each family individually and depends solely on the amount of the average monthly total income of the household per person.

The mandatory percentage of the payment is calculated according to the formula established by the Resolution of the Cabinet of Ministers of Ukraine dated 27.07.1998 No. 1156 “On the new amount of expenses for the payment of housing and communal services, the purchase of liquefied gas, solid and liquid stove household fuel in the case of providing a housing subsidy.”

To determine the mandatory percentage of payment, you need:

• calculate the average monthly total income of the household;
• divide the average monthly total income by the number of household members, determine the average monthly income per person;
• divide the income per person by the amount of the subsistence minimum per person calculated per month, established on January 1 of the year from which the subsidy is assigned (the amount of the subsistence minimum as of 01.01.2023 — UAH 2,589);
• divide the obtained result by 2 (the basic coefficient for assigning the subsidy), and then multiply by 15%.

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To calculate the size of the mandatory payment, the mandatory percentage of the payment is multiplied by the average monthly total income of the household.

This approach ensures the principle of social justice — the lower the household income, the lower the percentage of the mandatory payment for housing and communal services and, accordingly, the larger the amount of the subsidy.

I also noted that after the lifting of the quarantine in Ukraine, the mandatory basic rate of payment for communal services to receive a subsidy will remain at the level of 15% of the average monthly total household income. Olena Okhrimenko, director of the Department of Pensions, Insurance Payments, Social Services, Housing Subsidies and Benefits of the PFU, announced this on the air of the national marathon “Edyny Novyny”.

“The Cabinet of Ministers, in Resolution No. 651 on the cancellation of quarantine in Ukraine, extended the decision to establish a mandatory basic rate of payment for communal services for the duration of the quarantine at the level of 15% to receive a subsidy. After the lifting of the quarantine, starting in August, this figure should be 20% of the total income of the household, so the number of people who could claim a subsidy in the new heating season would decrease.”– noted Okhrimenko.

She emphasized that, according to the government’s decision, the mandatory base payment of 15% remains valid until the end of martial law and one month later. The representative of the Pension Fund added that the increase in pensions from July 1 will not affect the receipt of subsidies in the current period.

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“These people will not lose the subsidy, as it is determined based on the income of the previous period. Pensions increased from July 1 will already be taken into account when calculating assistance for the new heating season, in October 2023.”Okhrimenko said.

As “FACTS” wrote, in the event of an increase in tariffs, in particular, for electricity, subsidies will be transferred automatically thanks to the automated mechanism of information exchange between the Pension Fund and utility service providers.

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