THE ROLE OF THE UNIFIED SOCIAL CONTRIBUTION IN ENSURING THE SUSTAINABILITY OF SOCIAL INSURANCE

Анотація

The article examines the role of the Unified Social Contribution (USC) in ensuring the financial sustainability of Ukraine’s social insurance system under conditions of martial law, demographic transformations, and growing social risks. It is substantiated that the USC acts as a key financial instrument for the functioning of the compulsory state social insurance system and determines its ability to fulfill social obligations to the population. Scientific approaches to interpreting the concept of social insurance sustainability are analyzed, and the absence of its legislatively definition is demonstrated alongside its active use in international academic practice (OECD, ILO, ISSA). An author’s interpretation of social insurance sustainability is proposed as the system’s ability to ensure financial self-sufficiency and the continuity of social benefit payments through stable USC revenues amid economic and social transformations. Based on official data from the State Tax Service of Ukraine, the dynamics of USC revenues in 2021–November 2025 are analyzed, revealing an overall upward trend even under conditions of full-scale war and confirming the stabilizing role of the contribution in financing social benefits. Key economic, demographic, and institutional factors influencing the formation of USC revenues are identified, including labor market conditions, the level of the shadow economy, legislative regulation, and the effectiveness of administration. It is demonstrated that the stability of USC revenues is a decisive prerequisite for preserving the insurance-based nature of social protection, reducing the social insurance system’s dependence on budgetary transfers, and enhancing its financial capacity in the short and long term. The study concludes that strengthening the role of the USC as a system-forming element of social insurance requires comprehensive consideration of macroeconomic and institutional risks. The study concludes that further research should focus on the European experience in ensuring the financial capacity and sustainability of social protection systems, with the aim of identifying best practices applicable to Ukraine’s post-war recovery and social policy development.

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