On 14 April 2017, Regulation of the Cabinet of Ministers of Ukraine № 254 "On Amendments to the Cabinet of Ministers of Ukraine Regulation N 105 dated 4 March 2015" dated 12 April 2017 (the "Regulation") came into force. The Regulation approves the procedure for compensation to employers of the average salary paid by them in 2014-2015 to employees who (i) were called up for active military service; (ii) were enrolled in the army in connection with mobilization, for a special period, or enrolled to military service under contract in critical situation threatening national security or within a period of martial law; or (iii) were enrolled to military service during mobilization and are eligible for demobilization, but chose to remain in military service and signed a contract.

Under the Regulation, the payment of compensations for 2014-2015 at the expense of the budget will be made to entities, institutions, organizations, farms and agricultural production cooperatives regardless of their subordination and ownership, as well as to individual entrepreneurs within the amount of the average salary of mobilized employees.

To obtain the compensation, by 14 July 2017, the employers shall submit to the relevant social security authority their reports on the actual expenses for payment of the average salaries to the employees. The reports must be confirmed by the district (city) military commissariat or the military unit that carried out the drafting of the employees to prove that the specified employees were actually drafted to military service.