DEDUCTIONS FROM WAGES: FROM THE NINETIES TO TODAY

Abstract

The implementation of social security programmes in developing countries is an important and challenging task, given the fact that capital and insurance markets are largely underdeveloped and budgetary constraints are high. In the context of the transformation of social and economic processes in society, the appropriate level of insurance development provides not only monetary payments in the case of occurrence of insured events, but also creates legal and economic conditions for stimulating effective work. The basis of the system of social protection of the population should be state social insurance, carried out on a mandatory basis. After all, no state, even a highly developed one, build a social insurance system that is able to fully and effectively meet the needs of all segments of the population. The challenges facing our state in modern conditions lead to significant economic and social losses. Mitigation and limitation of the negative impact of such instability on citizens is possible in the case of creation an effective system of social protection, able to provide social support and implementation of social functions. Mandatory accruals and deductions from the salary of the unified social contribution are in the focus of various users of accounting information. They determine the amount of wages to be paid for employees and form an effective system of social protection for the population. They act as a component of expenses that determine the cost of products and affect the financial result of economic activity for the business entity. They play an important role for the state in generating revenues to ensure the performance of social functions. The value of mandatory accruals and deductions is assessed differently for each of the parties, but their implementation concerns the interests of all users. Such costs are regulated by law. The law regulates the payment of such wage deductions as a unified social contribution, which replaced the fees to the Pension Fund and other social insurance funds. All these events make the necessary of the further research of the state and problems of the obligatory state social insurance in Ukraine in modern realities.