Funding

Funding of ECEC

The main policy objectives of state funding of early childhood education and care (ECEC) are to ensure accessibility and provide services free of charge. The Law on Early Childhood Education and Care (Закон України ‘Про дошкільну освіту’) regulates it.

Funding for early childhood education institutions (ECEIs), regardless of ownership type, may come from multiple sources. These include:

• the founder(s);
• state and local budgets;
• parents or guardians;
• voluntary donations and targeted contributions from individuals and legal entities;
• other funds permitted by law.

Municipalities own most ECEIs and finance them through local budgets. ECEС services are mainly financed by rural, settlement and city councils and other legal sources. For details on the distribution of responsibilities, including local budget expenditures, refer to the subchapter 2.7 Administration and governance at local and/or institutional level.

According to the Regulation on an ECEI (Постанова Кабінету Міністрів України ‘Про затвердження Положення про заклад дошкільної освіти’), the maintenance and development of the institution's material and technical base are financed by the founder and other lawful sources.

ECEIs established through public-private partnerships receive funding from their founders, with the amount of co-financing determined by the terms of their agreement.

State and municipal ECEIs may offer paid educational and other services. The Cabinet of Ministers of Ukraine defines the standard list of such services, while the founders of these institutions have the authority to approve additional services beyond those listed in the standard list.

 

Funding of school education

In Ukraine, complete general secondary education consists of three levels: primary education, lower (basic) secondary education and upper (field-specific) secondary education. The main objectives of financing general secondary education are to ensure accessibility and free education in state and municipal institutions. According to the Constitution of Ukraine, general secondary education is compulsory. 

Primary education institutions are mainly municipal and financed from local budgets.  Rural, settlement and city budgets finance general secondary education institutions (GSEIs), including primary schools, through village, settlement and city budgets. In general, primary education begins in gymnasiums and lyceums, which are financed from local budgets.

In accordance with the Law on Complete General Secondary Education (Закон України ‘Про повну загальну середню освіту’), the financing of general secondary education is provided from the state and local budgets, as well as from other legal sources. Only state and municipal institutions guarantee free education.

The state budget provides funding for state GSEIs. These include specialised educational institutions such as art, sports, military, scientific lyceums, etc. State GSEIs not included in the list approved by the Cabinet of Ministers of Ukraine are financed from local budgets at the regional level and from the budget of the Autonomous Republic of Crimea.

GSEIs, including lyceums, established by city, settlement or rural councils are financed from the budgets of the respective cities, towns and villages.

As not all local budgets are financially capable, a budget equalisation mechanism was introduced in 2015. This includes an education subvention – an inter-budget transfer from the state budget to local budgets. The subvention covers the salaries of teaching staff in various types of educational institutions. These include primary schools, gymnasiums, lyceums, private schools, specialised educational institutions, children's homes, educational and rehabilitation centres and inclusive resource centres, among others.

The Cabinet of Ministers of Ukraine approves an allocation formula to determine the amount of the educational subvention (Формула розподілу освітньої субвенції між місцевими бюджетами). Several factors influence the allocation of such a subvention at the local level, including the estimated financial standard of the budgetary provision, the number of pupils, the curriculum, salary levels and other indicators and adjustment coefficients. The authorities apply a common approach to all local budgets across Ukraine.

A key priority for the Ukrainian government remains strengthening the material and technical support to GSEIs and creating a modern educational environment. This priority also includes ensuring accessibility, implementing the New Ukrainian School (NUS) reform and creating safe conditions in educational institutions during martial law. To achieve this, state-targeted subventions are provided for the following purposes:

• purchasing school buses (Постанова Кабінету Міністрів України ‘Деякі питання надання субвенції з державного бюджету місцевим бюджетам на придбання шкільних автобусів’);
•  providing state support for persons with SEN (Постанова Кабінету Міністрів України ‘Деякі питання надання субвенції з державного бюджету місцевим бюджетам на придбання шкільних автобусів’);
• creating safe conditions in GSEIs (Постанова Кабінету Міністрів України ‘Деякі питання надання субвенції з державного бюджету місцевим бюджетам на облаштування безпечних умов у закладах, що надають загальну середню освіту’), etc.

These state-targeted subventions are financed from the state budget, with co-financing from local budgets at the regional level.

 

Funding of out-of-school education

Funding for out-of-school education plays a crucial role in ensuring the versatile development of learners. The Law on Out-of-School Education (Закон України ‘Про позашкільну освіту’) outlines the main principles of state policy in this area.

Funding for out-of-school educational institutions supports the provision of quality educational services. These services help children and young people to develop personal abilities and to acquire basic vocational skills and competences.

State out-of-school educational institutions are established by central executive authorities and financed from the state budget. Local self-government bodies, enterprises, organisations (including registered religious organisations) and private individuals may also establish such institutions. They must have qualified teaching and support staff and the necessary material, technical, scientific and methodological resources.

Thus, the focus of financial support is to facilitate the provision of quality services that develop the talents of children and young people in the fields of education, science, culture, physical education and sport. At the same time, it also aims to promote the acquisition of essential vocational skills.

 

Funding of VET

Vocational education and training (VET) is an important component of the Ukrainian education system. It provides a complete general secondary education and equips learners with pre-vocational training and vocational skills. The government funds VET through the state budget, local budgets and other legally permitted sources.

Since 2016, most VET institutions have been operating under municipal ownership. As a result, local authorities are responsible for providing material and technical support to these institutions. Funding comes mainly from regional budgets, as well as from the budgets of rural, settlement city territorial communities. The source of this budget funding depends on the type of ownership of the institution (state or municipal) and the affiliation of the institution to a particular territorial community.

State and municipal VET institutions receive education subventions to cover the costs of providing complete general secondary education, including funds for the salaries of pedagogic staff. In addition, these institutions may receive state-targeted subventions that require co-financing from local budgets at the regional level. This includes funding for the establishment of training and practice centres for modern VET (Постанова Кабінету Міністрів України ‘Про затвердження Порядку та умов надання субвенції з державного бюджету місцевим бюджетам на створення навчально-практичних центрів сучасної професійної (професійно-технічної) освіти’).

 

Financial autonomy and control

The Ukrainian Law on Education guarantees educational institutions the right to financial, academic, organisational and personnel autonomy. This autonomy allows institutions to make financial decisions independently. However, the financial autonomy of ECEIs and GSEIs is rather limited due to their dependence on local education authorities for funding. These authorities provide financial support to educational institutions and try to maintain control over the distribution and use of financial resources.

According to the Budget Code of Ukraine (Бюджетний кодекс України), budgetary units are responsible for organising internal control and audits in the educational institutions under their jurisdiction. This means that local self-government bodies monitor the distribution and use of funds by educational institutions financed from local budgets. The Ministry of Education and Science of Ukraine (MESU) monitors the use of state budget funds by state educational institutions.

In addition, the State Audit Service of Ukraine and the State Treasury Service of Ukraine also monitor the efficiency of the use of the funds from both the state and local budgets.

 

Financial autonomy and control in ECEC

ECEIs have limited financial autonomy. The founder primarily funds their maintenance and development. The founder also decides on the level of financial independence.

Staffing plans for state and municipal ECEIs follow legal norms based on standard staff regulations. These are approved by the MESU in agreement with the Ministry of Finance of Ukraine (Наказ Міністерства освіти і науки України ‘Про затвердження Типових штатних нормативів дошкільних навчальних закладів’).

ECEIs must meet specific building, sanitary and technical requirements. Model lists of material and technical equipment, including play, learning and didactic equipment for these institutions are approved by the MESU. 

State control over the activities of the ECEIs is exercised by local executive authorities and education management, central executive authorities subordinate to these institutions, and the State Service of Education Quality of Ukraine.

 

Financial autonomy and control in school education

GSEIs have greater financial autonomy. The Law on Сomplete General Secondary Education allows these institutions to manage their budgets independently within the approved allocations. These funds can be used for:

• Establishing the structure of a general secondary school and determining its staffing plan;
• Remuneration of staff, including additional payments, allowances, bonuses, material and health support, incentives and rewards;
• Covering expenses for current repairs of school buildings and facilities;
• Funding the professional development of pedagogical and other staff; 
• Entering into civil law agreements (contracts) in accordance with the legislation to support the institution's activities.

However, the extension of financial autonomy to GSEIs is progressing slowly.

Oversight of these institutions is exercised by local executive authorities and educational management bodies, as well as by central executive authorities to which general secondary schools are subordinated. The State Service of Education Quality of Ukraine also monitors their activities within the scope and procedures defined by the Law on Education and the Law on Complete General Secondary Education.

 

Financial autonomy and control in VET

VET institutions have a relatively high degree of financial autonomy. The MESU supervises the activities of VET institutions together with the relevant education authorities.

 

Fees within public education

Fees in public ECEC

Under the Law on Early Childhood Education and Care, the state guarantees children the right to free early childhood education in state and municipal institutions, as well as free medical care in these institutions.

Payment is only required for meals in ECEIs. The Cabinet of Ministers of Ukraine determines the procedure for setting the fees for meals in state and municipal institutions. Local self-government bodies may, at the expense of the local budget, provide preferential conditions for the payment of meals for children from large or low-income families and other groups in need of social support.

 

Fees in public school education

Complete general secondary education in state and municipal schools is free of charge for learners, as guaranteed by the state.

However, pupils may, if they wish, receive additional paid educational and other services at a general secondary school. For example, participation in clubs and sections organised by schools may be subject to fees.

According to statistical reports, at the beginning of the school year 2023/2024, there were 39,391 clubs and sections in various fields in schools. Of these, 1,321 required paying fees. A total of 668,971 pupils participated in these activities, of whom 22,119 (3.3%) paid for their participation. The largest number of fee-paying clubs is found in physical education, sports, art and aesthetics.

State and municipal aesthetic schools also set fees for educational services in areas such as singing, musical instrument classes (e.g., piano, guitar, saxophone) and dance or choir departments. For certain categories of learners, these classes are free of charge and there is a 50% discount in accordance with the law.  

 

Fees in public VET

VET is provided free of charge to Ukrainian citizens in state and municipal VET institutions, financed by the state and on a competitive basis.

VET institutions may provide additional paid educational and other services, the list of which is determined by the Cabinet of Ministers of Ukraine (Постанова Кабінету Міністрів України ‘Перелік платних послуг, які можуть надаватися закладами освіти, іншими установами та закладами системи освіти, що належать до державної та комунальної форми власності’).

The cost of paid educational services is based on economically justified expenses related to their provision. Educational institutions may differentiate fees for paid services based on the volume licensed, the supply/demand ratio for specific branches of study (specialities) in the national/regional educational services market (Наказ Міністерства освіти і науки України, Міністерства економіки України, Міністерства фінансів України ‘Про затвердження порядків надання платних послуг державними та комунальними навчальними закладами’).

 

Financial support for learners' families

Financial support for learners' families in ECEC

As ECEC is free of charge in Ukraine, tax benefits and other forms of financial support are not available.

Medical care in early childhood education and meals for certain categories of children are also provided free of charge. Local authorities and executive bodies ensure free meals for orphans, children deprived of parental care and children with SEN attending special and inclusive classes (groups). Additionally, children from families receiving assistance under the Law on State Social Assistance to Low-Income Families, as well as those from families listed in the Law on the Status of War Veterans, Guarantees of Their Social Protection (Закон України ‘Про статус ветеранів війни, гарантії їх соціального захисту’) are entitled to free meals.

Parents or guardians in families where the total income per person for the previous quarter did not exceed the guaranteed minimum are exempt from paying for their child's meals. The guaranteed minimum is set annually by the Law on the State Budget of Ukraine.

The legislation also defines the circumstances under which the fee for meals may be reduced by 50% for families with three or more children. This benefit applies not only to biological children, but also to children under guardianship or adopted children.

 

Financial support for learners' families in school education

Schools provide pupils with state guarantees and a number of benefits, as set out in the Law on Education. Public authorities and local self-government bodies, which manage state and municipal educational institutions, ensure that pupils receive free hot meals.

Several groups of pupils have the right to free meals at schools. Among them are orphans, children deprived of parental care, children with SEN who study in special and inclusive classes, children from low-income families with an average monthly total income below the guaranteed minimum. This also applies to children from families receiving assistance under the Law on State Social Assistance to Low-Income Families and those listed in the Law on the Status of War Veterans, Guarantees of Their Social Protection. In addition to the groups mentioned above, local authorities may, at their discretion, provide free meals to other categories of children. Quite often, local authorities provide free meals for pupils in grades 1-4. 

Pupils receiving complete general secondary education in educational institutions outside their place of residence are provided with boarding/dormitories and/or transportation for the period of their studies.

Local self-government bodies also provide preferential travel for pupils to and from their place of study, with the costs being covered by local budgets. 

According to the Tax Code of Ukraine, a social tax benefit of 150% applies to personal income taxpayers who are single parents (either mother or father), widows (widowers) or guardians/custodians, for each child under the age of 18 and for each disabled child under the age of 18 (Податковий кодекс України).

 

Financial support for learners' families in VET

Since VET learners are mostly of age, their families do not receive direct financial support, but they benefit indirectly from the support given to the learners themselves. 

A VET learner on a contractual basis or a member of their closest family is entitled to a tax reduction as defined by the Tax Code of Ukraine.

Financial support for families of pupils with SEN

The Ministry of Social Policy of Ukraine provides financial support to the families of pupils with SEN and children with disabilities. Specifically, children with disabilities receive a number of benefits and free services (Права дітей), including:

• Free travel on passenger urban transport (excluding the metro and taxis). Children with visual impairments are also entitled to free travel on all types of suburban transport;
• Free meals for children with disabilities, children from low-income families receiving assistance under the Law on State Social Assistance to Low-Income Families, and others attending state and municipal educational institutions;
• А 50% discount on domestic air, rail, river and road fares from 1 October to 15 May. This benefit also applies to one person accompanying a child with a disability during the trip;
• Free health resort treatment based on medical recommendations, available through vouchers issued by the Ministry of Health of Ukraine or regional bodies designated by local authorities and funded by local budgets;
• Free or subsidised social and medical services, including the provision of technical aids such as prosthetic and orthopaedic appliances, orthopaedic footwear and mobility equipment, on presentation of a medical certificate;
• Free medicines on prescription in case of outpatient treatment;
• Gifted children with disabilities can study music, fine arts and crafts free of charge in general education institutions or special out-of-school educational institutions;
• Families raising children with disabilities are provided with housing if necessary to improve their living conditions;
• One of the parents of a child with a disability may be granted one additional day off per month at the employer's expense according to the Labour Code of Ukraine (Кодекс законів про працю України);
• One of the working parents is entitled to a 150% tax social benefit for each child with a disability under the age of 18 according to the Tax Code of Ukraine;
• Employers may not require a mother of a child with a disability to work overtime, go on business trips or be transferred to another job without her consent;
• Employers may offer reduced working hours to women with a child with a disability at their own expense;
• At the request of a woman who has a child with a disability, including a child under her guardianship, the employer or its authorised representative (both at the time of hiring and subsequently) is obliged to arrange part-time work or a reduced working week for her. In such cases, remuneration shall be paid in proportion to the hours worked or on the basis of productivity. Part-time work does not limit the scope of the employee's labour rights;
• A mother of a child with a disability is entitled to 7 calendar days' paid leave per year, excluding public holidays and non-working days. The annual leave is granted at her request at a time convenient to her. In addition, she is entitled to unpaid leave of up to 14 calendar days per year at her request;
• A mother raising a child with a disability up to the age of six will have the right to early retirement (Закон України ‘Закон про загальнообов'язкове державне пенсійне страхування’);
• Social assistance is available for certain categories of children, including those with disabilities, at a rate of 70% of the guaranteed minimum level for persons unable to work;
• Children with disabilities who have musculoskeletal disorders, provided they have a relevant medical-social assessment confirming their eligibility for a vehicle (including one with manual controls if necessary) and are at least five years old, are entitled to vehicles on preferential terms.
• Assistance for children suffering from severe disorders and diseases, for a child who has suffered a serious injury, needs an organ transplant, needs palliative care, but has not been diagnosed with a disability, is provided monthly in the amount of two guaranteed minimums established for children of the corresponding age.
• For a child with a disability of subgroup A under the age of six, the care allowance is set at 200% of the guaranteed minimum. The care allowance for another child with disability under the age of 6 is 50% of the guaranteed minimum (Закон України ‘Про державну соціальну допомогу особам з інвалідністю з дитинства та дітям з інвалідністю’);
• The care allowance for a child with a disability under the age of 18 is granted to a parent, adoptive parent, guardian or foster parent who is not working, studying (except for part-time studies), performing service, holding an elected position and actually caring for a child with a disability;
• Children with hearing, visual and musculoskeletal impairments are provided with individual corrective aids in accordance with procedures established by the Cabinet of Ministers of Ukraine.

 

Financial support for learners

Financial support for learners in ECEC

ECEC in state and municipal institutions is free of charge. Therefore, preschool children do not need financial support. 

At the same time, financial support is provided for children with SEN and children with disabilities, as described in the previous subparagraph Financial support for families of pupils with SEN.

 

Financial support for learners in school education 

Learners in schools, regardless of their subordination, type or form of ownership, receive medical care. This care is provided by medical professionals employed by the schools or by the relevant health institutions. Each year, the healthcare institutions, together with the education and healthcare authorities, carry out free medical examinations, monitor the health of pupils and provide preventive treatment.

The state finances textbooks, including electronic versions, for pupils. These textbooks cover academic subjects (integrated courses) in accordance with the branches of knowledge defined by the state standards.

Pupils from low-income families receive free meals.

Local authorities organise and finance school transport to and from school through local budgets. School buses, including those specially equipped for pupils with SEN, are used for this purpose. Pupils with disabilities can also use public transport at reduced fares. For more details on support for pupils with SEN, see the subparagraph Financial support for families of pupils with SEN.

Pupils in grades 8-9 of state art lyceums, scientific lyceums and specialised sports educational institutions with specific learning conditions receive scholarships. The Cabinet of Ministers of Ukraine determines the relevant payment procedure (Постанова Кабінету Міністрів України ‘Питання стипендіального забезпечення’).

 

Financial support for learners in VET

Several groups have the right to special social protection in the field of VET in accordance with the legislation. These groups include persons with disabilities, orphans, children deprived of parental care and persons with SEN. The list also includes learners affected by the Chornobyl disaster, recognised victims of the Revolution of Dignity, combatants and persons with disabilities as a result of war, as well as children living in settlements along the contact line and those registered as internally displaced persons (IDPs).

State-targeted support for VET includes the following forms:

• Full or partial payment of tuition fees at the expense of educational subventions from the state and local budgets;
• Social scholarships; 
• Free textbooks; 
• Free access to the Internet, database systems in public and municipal educational institutions; 
• Free accommodation in a dormitory; 
• Other measures approved by the Cabinet of Ministers of Ukraine. 

VET institutions provide students with dormitories and special clothing for the duration of their studies, as determined by the Cabinet of Ministers of Ukraine (Порядок забезпечення гуртожитками осіб, які здобувають освіту в закладах професійної (професійно-технічної) освіти; Порядок забезпечення спеціальним одягом осіб, які здобувають освіту в закладах професійної (професійно-технічної) освіти).

Full-time vocational students are eligible for scholarships, as determined by the Cabinet of Ministers of Ukraine (Постанова Кабінету Міністрів України ‘Порядок призначення і виплати стипендій’). Scholarships may be academic and social. Priority for these scholarships is given to: 

1. Orphans and children deprived of parental care, persons belonging to this group and students who lose their parents while studying between the ages of 18 and 23;
2. Persons entitled to benefits under the Law on the Status and Social Protection of Citizens Affected by the Chernobyl Disaster (Закон України ‘Про статус і соціальний захист громадян, які постраждали внаслідок Чорнобильської катастрофи’);
3. Persons from low-income families, provided that they receive state assistance in accordance with the law;
4. Children with disabilities and persons with disabilities in groups I–III;
5. Students who achieve an average academic grade of not less than 7 on a twelve-point scale or not less than 4 on a five-point scale, based on semester evaluations;
6. Persons entitled to social scholarships in accordance with Article 5 of the Law on Increasing the Prestige of Miners' Work (Закон України ‘Про підвищення престижності шахтарської праці’);
7. Persons guaranteed a social scholarships under the Law on Amendments to Certain Laws of Ukraine Concerning State Support for Combatants and Their Children, Children Whose One Parent Has Died in the Area of Anti-terrorist Operations, Combat Actions, Armed Conflicts, or During Mass Civilian Protest Actions, and Children Registered as IDPs for the Purpose of Obtaining Vocational and Higher Education (Закон України ‘Про внесення змін до деяких законів України щодо державної підтримки учасників бойових дій та їхніх дітей, дітей, один із батьків яких загинув у районі проведення антитерористичних операцій, бойових дій чи збройних конфліктів або під час масових акцій громадянського протесту, дітей, зареєстрованих як внутрішньо переміщені особи, для здобуття професійно-технічної та вищої освіти’).

The basis for granting a social scholarship is the person's right to receive state benefits and guarantees established by the laws of Ukraine.

VET students can receive preferential loans (Порядок пільгового кредитування для здобуття професійної (професійно-технічної), фахової передвищої та вищої освіти). Students eligible for preferential long-term loans are those specified in the list approved by the Cabinet of Ministers of Ukraine (Порядок та умови надання державної цільової підтримки деяким категоріям громадян для здобуття професійної (професійно-технічної), фахової передвищої та вищої освіти). 

State-targeted support also includes: full or partial payment of tuition fees at the expense of the general fund of the state or local budgets; free textbooks; free access to the Internet, database systems, etc.

To support students financially, VET institutions create material incentive funds. These funds come from budget allocations, income from production activities and contributions from enterprises, institutions, organisations and individuals. The financial incentive fund regulation is approved by the central executive body responsible for education and science policy or by the founder of the VET institution  (Закон України ‘Про професійну (професійно-технічну) освіту’).

 

Private education

Financial support for private ECEC

Private ECEIs operate in accordance with the provisions of the Civil Code of Ukraine (Цивільний кодекс України), the Commercial Code of Ukraine (Господарський кодекс України), the Tax Code of Ukraine (Податковий кодекс України), the Laws of Ukraine on Education, on Early Childhood Education and Care and on Licensing of Economic Activities (Закон України ‘Про ліцензування видів господарської діяльності’), etc.

Private ECEIs are established on the basis of the private property of one or more individuals (including individual entrepreneurs), foreigners, stateless persons or legal entities.

These educational institutions receive funding from the founder(s) and parental fees for educational services. They are fully financially autonomous. Local education authorities and the Ministry of Education and Science of Ukraine monitor their compliance with licensing requirements. The State Tax Service of Ukraine and the State Audit Service of Ukraine oversee their financial and economic activities. 

Private ECEIs enjoy tax privileges, such as VAT exemption. They may receive a discount on rent by the decision of local authorities. 

One of the child's parents can claim a tax deduction of 18% of the tuition fees at a private ECEI.

The cost of private ECEIs varies according to the quantity and quality of services provided and ranges from 127 to 632 euros (5,000 to 25,000 UAH) per month. Costs depend on factors such as the length of a child's stay, the quality of education, the child's comprehensive development, comfort and safety.

 

Private school education

Private schools operate in accordance with the provisions of the Civil Code of Ukraine, the Commercial Code of Ukraine, the Tax Code of Ukraine, the Laws of Ukraine on Education, on Early Childhood Education and Care, on Licensing of Economic Activities, etc. 

Private schools are established in the form of private educational institutions founded by a decision of an individual(s) and/or legal entity(ies) under private law.

The sources of funding for private schools are the funds of the founder(s), parental tuition fees, sponsorship and charitable contributions, grants and other revenues not prohibited by law. 

Licensed private schools may receive funding from the state and local budgets, including education subventions for teacher salaries. It is based on the financial standard of budgetary provision per pupil with relevant adjustment coefficients as established by the Cabinet of Ministers of Ukraine. The financial standard of budget provision per pupil is determined by the formula approved by the Cabinet of Ministers of Ukraine. 

Parents have to pay for complete general secondary education in private schools, the amount of which is determined by contract.

Private schools enjoy tax benefits, including exemption from VAT. 

One of the child's parents can claim a tax deduction of 18% of the tuition fees at the private school. 

Private school fees in Ukraine range from 228 to 2528 euros (9,000 to 100,000 UAH). These tuition fees depend on the educational programmes, quality of education, the pupil's comprehensive development, comfort and safety.