Tetyana Tryhubenko,,
Specialist at AF “AUDIT-INVEST”
Table of contents
Individual entrepreneurs (sole proprietors) in Ukraine are entitled to pregnancy and childbirth benefits—commonly known as “maternity benefits.” However, the mechanism for receiving these payments as a sole proprietor differs from the standard maternity leave process for salaried employees. In 2026, updated rules apply regarding the Unified Social Contribution (USC), electronic sick leaves, and filing for benefits through the Pension Fund of Ukraine (PFU).
Is a sole proprietor entitled to maternity benefits?
Yes. The right to pregnancy and childbirth benefits is granted to insured individuals who pay the Unified Social Contribution (USC). A sole proprietor is considered an insured individual if they pay the USC for themselves.
Maternity benefits for a sole proprietor do not constitute a “leave of absence” in the employment law sense; rather, they are an insurance payout designed to compensate for the loss of income during the period of pregnancy and childbirth.
Step-by-step guide: how to apply for maternity benefits as a sole proprietor
To receive pregnancy and childbirth benefits from the Pension Fund of Ukraine, an individual entrepreneur must complete the following steps:
1.Calculate the benefit amount:
Calculate the total benefit amount in compliance with the Procedure for calculating average wages (income, financial allowances) for general state compulsory social insurance payouts, approved by Cabinet of Ministers Resolution No. 1266 dated September 26, 2001.
2.Open a special bank account:
Open a dedicated special account for receiving insurance funds from the PFU at any bank. Please note that the funds credited to this separate account must be transferred to a personal card or withdrawn in cash at a bank branch. PFU maternity benefits cannot be transferred to a standard corporate business account.
3.File a reference tax return for 2026
To ensure that the data regarding your USC payments and the income amount used to calculate the sick leave is visible to the PFU, you must submit a reference tax return. This confirms your status as an insured individual. USC must also be paid for the month in which the e-sick leave was opened.
4.Obtain a certificate of no USC tax debt
After filing the reference return, request an official certificate confirming the absence of outstanding debts on payments monitored by the tax authorities to verify your clear financial standing.
5.Generate an OK-7 form
Download the OK-7 insurance history statement through your personal account on the PFU web portal or via the Diia platform.
6.Submit the statement of calculation to the PFU
File the official statement of calculation (zaiava-rozrakhunok) through the Pension Fund of Ukraine electronic portal. Insurance payouts are processed provided that the application is submitted no later than 6 calendar months from the end date of the pregnancy and childbirth leave.
Documents required for the statement of calculation:
To complete the application process, the following supporting documents must be attached to the statement of calculation:
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A copy of the annual tax return for 2025 and the reference tax return for 2026 (covering January through the month the e-sick leave was opened);
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The certificate of no outstanding USC debt;
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A bank certificate confirming the opening of the separate special account;
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An extract from the Unified State Register (EDR) confirming sole proprietorship registration (or a registration certificate);
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A copy of the OK-7 statement;
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The formal decision of the policyholder (the sole proprietor herself) to grant the benefits;
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A free-form statement detailing the step-by-step calculation of the benefit amount.
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- After receiving the payout: You must submit a Notification of Payment via the Pension Fund of Ukraine portal and reflect this income in Appendix 4DF of the unified tax report (in line with Tax Inspection Letter No. 874/2/99-00-24-01-03-02 dated August 12, 2025).
How maternity benefits are taxed for sole proprietors
Pregnancy and childbirth benefits:
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Are not subject to Personal Income Tax (PIT);
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Are not subject to Military Tax.
This exemption is explicitly guaranteed by the Tax Code of Ukraine (subparagraph 165.1.1 of Section IV of the TCU).
Is USC assessed on sole proprietor maternity benefits?
USC is not withheld from the maternity benefits themselves, as the sole proprietor is the recipient of the aid, not an employer in this context.
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For sole proprietors on the general taxation system, the base for calculating USC is the amount of income (profit) generated directly from business operations. Since maternity benefits do not stem from business activities, general-system sole proprietors do not pay USC on these amounts.
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For sole proprietors on the simplified taxation system (single tax payers), targeted funds received from the PFU are explicitly excluded from taxable business revenue (subparagraph 4 of paragraph 292.11 of the TCU). Since the benefits do not constitute business income, no USC is assessed on them.
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If the sole proprietor does not have a primary place of employment where they are hired as a salaried employee, they must generally continue to pay the standard monthly USC for themselves.
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If the sole proprietor is concurrently employed elsewhere and their employer already pays at least the minimum required USC for them, the sole proprietor is exempt from paying USC for themselves as an entrepreneur.
If you are a sole proprietor preparing for maternity leave, do not miss out on your legal state benefits! Double-check that you have no USC debt, file your reference tax return on time, and apply for your allowance through the PFU—take care of your financial peace of mind today!
