Reform of Pension Legislation
On 3 October 2017 the Ukrainian Parliament adopted amendments to the Law of Ukraine on Mandatory State Pension Insurance. The amendments extended the pension qualifying period, which must be earned by the person as employee, or otherwise according to the law, to be eligible to receive social security payments. Starting from 1 January 2018, the person is eligible to receive a pension if such person’s qualifying period is 25 years, which will be extended annually by one year reaching 35 years in 2028. Retirement age remains 60 years.
If the person’s pension qualifying period is not sufficient under the general rule, the person may still be eligible to receive a pension under a special transitional rule.
Changes in laws on immigration and employment to promote foreign investment
On 27 September 2017, the Law of Ukraine on Amendments to Certain Legislative Acts of Ukraine on Elimination of Barriers to Attracting of Foreign Investments No. 2058-VIII of 23 May 2017 (the Investments Law) became effective.
The Investments Law introduces certain amendments that aim to streamline immigration procedures for foreign investors, as well as simplifying the receipt of work permits for employment of foreign citizens and stateless persons.
The most important amendments to the Law of Ukraine on Legal Status of Foreign Citizens and Stateless Persons made by the Investments law include that it:
- allows a foreigner or a stateless person to obtain a temporary residence permit if the applicant qualifies as a foreign investor. For this purpose, the Investments Law views a foreigner or a stateless person as a foreign investor if (i) he/she is a founder and/or participant and/or beneficial owner (controller) of a Ukrainian legal entity, based on the information from the Ukrainian legal entity register; and (ii) the amount of the participation interest contributed to the charter capital of such a legal entity that the foreign investor holds or controls equals to at least EUR 100,000; and
- provides for a longer validity period of residence permits for foreign investors (two years) and for persons who obtain a residence permit based on a work permit (up to three years depending on the grounds for issuance of the work permit, instead of the previous general term of one year).
The most important amendments to the Law of Ukraine on Employment of Population made by the Investments law are that it:
- abolishes the general approach, which has made issuance of a work permit possible only if there are no qualified workers in Ukraine (or its region) to perform relevant work or if there is sufficient justification for employment of a foreigner or a stateless person; and
- provides for a longer validity period of up to three years (instead of a general term of one year) of work permits for certain categories of foreign employees (high-paid, creative, IT professionals and others).