The burden in the social insurance system on business entities in Ukraine and the EU

Anastasiia Kyrychenko

doi:10.38188/2534-9228.21.2.27

Abstract

The article considers the burden in the social insurance system on business entities of Ukraine and EU countries. A comparison of northern European and continental models of social insurance is made. The system of social insurance in terms of payment of contributions by economic entities of Ukraine and EU countries is analyzed and a comparative description is made. An analysis of the reform of insurance rates for business entities for compulsory state social insurance in Ukraine, as well as the dynamics of the single social contribution from businesses. The influence of the load in the social insurance system on economic entities on the level of shadowing of the state economy is substantiated. The article defines the dynamics of the integrated indicator of the level of the shadow economy in Ukraine and the growth / decrease of real GDP. The factors that contribute to the growth of the shadow economy in the EU countries are identified and the shadow sector in these countries is analyzed. An approach to reduce the burden in the social insurance system on business entities of Ukraine is proposed.

Highlights

Favorable conditions for doing business are one of the main tasks for both developing and developed countries
The single social contribution is considered one of the main factors influencing the level of shadowing of the economy of Ukraine and the EU
The reform of the single social contribution in Ukraine was designed to reduce the level of shadowing of the economy and the burden on the social insurance system on economic entities and brought some positive results

Summary

Introduction

Favorable conditions for doing business are one of the main tasks for both developing and developed countries. The single social contribution is considered one of the main factors influencing the level of shadowing of the economy of Ukraine and the EU.

Results

Conclusion