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Providing access to social insurance for members of peasant farms: organizational and economic aspects


There are 2 million of self-employed members of peasant farms in Ukraine, which are not included to the state social insurance system. According to the Law, they have possibility for self-imposed insurance, but the conditions for such participation are both unacceptable financially and inaccessible organizationally for their majority. It leads to low prestige of self-employment and hinders the development of family farming in agriculture.

The implementation of compulsory participation of peasant farms into the state social insurance system under general conditions can lead to the reduction of their output and numbers. Therefore, it is necessary to apply preferential approach for the peasant social insurance, following the models of other countries. According to this approach, peasants pay preferential social fee and get budgetary compensation to their pensions. Involving self-employed peasants to a system of compulsory social insurance system requires identification of the criteria, which determine the status of social insurance payer. It requires the implementation of the procedure for registration of these farms and their insured members, providing formalization of self-employment.

These tasks should be solved as a part of the wider problem: the creation of favorable conditions for the voluntary transformation of PFs into the family farms of European model.

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