Ukrainian government extends financial aid for businesses employing IDPs

The Cabinet of Ministers extended the compensation program for employers who hire internally displaced persons to 2023.

The Ukrainian government made such a decision at a meeting on January 10, the Government Portal reports.

"The government's decision provides for supplementing the program's financing mechanisms, in particular, at the expense of Ukraine's Mandatory State Social Insurance Fund in case of unemployment (within financial capabilities) and other sources not prohibited by law," the statement says.

Yulia Svyridenko, Ukraine's First Vice Prime Minister and Minister of Economy, emphasized that these changes would provide an opportunity to continue implementing this program.

"The proposed changes will allow the implementation of this program, which is in demand among employers, to be continued in 2023. Last year, more than 10,000 entrepreneurs used it.

They received compensation from the state in the total amount of UAH 200 million for employing almost 16,500 internally displaced people," the official said.

The Fund's estimated expenses for 2023 amount to UAH 308 million, with the estimated employment of 23,000 people.

Reference

The Ukrainian government introduced a program to encourage entrepreneurs to hire internally displaced persons in April 2022.

The program's purpose is to speed up the adaptation of people who were forced to move from dangerous regions and increase the employment level among the population, explained the government.

For each employed internally displaced person, the state pays the employer compensation in the minimum wage (6,700 hryvnias) for two months.