The World Bank has updated poverty standards: why millions of Ukrainians are below the poverty line
28 July 2025 17:51
ANALYSIS FROM 
The World Bank has updated its methodology for calculating the number of people living below the poverty line. The explanations refer to global inflation rates and the decline in the purchasing power of the dollar. In fact, to stay below the poverty line, incomes must exceed $8.3 per day (approximately UAH 345), but in Ukraine, this is a significant problem, and approximately 9 million Ukrainians live below the poverty line.
The beginning of the era of poverty
Poverty lines have been redefined in the world. Now, a person is considered poor if he or she spendsless than $8.30 per day, which in hryvnia equivalent is about UAH 345 per day or UAH 10,358 per month.
For low-income countries, the threshold was raised from $2.15 to $3 per day. In lower-middle-income countries, such as Ukraine, living on less than $4.20 per day (about 175 UAH per day) is considered poverty.
This figure is significantly higher than the officially approved subsistence level in Ukraine. As of June 2020, it amounted to UAH 2,118 (approximately USD 75).
The World Bank estimates the overall poverty rate in Ukraine at 29%, which is about 9 million people, meaning that almost a third of the country’s population lives below the poverty line, defined as income below the subsistence level.
The real incomes of Ukrainians do not meet the new minimum standards.
The average pension in Ukraine is UAH 5,789 per month, which is less than the poverty threshold. According to Opendatabot:
- 3.9% of pensioners receive UAH 2,001-3,000;
- 32.3% – UAH 3,001-4,000
- 20.4% – UAH 4,001-5,000;
- 29% – UAH 5,001-10,000;
- only 14.5% receive more than UAH 10,000.
Ukraine officially has about 10.3 million pensioners, and according to the new poverty criteria, about 8.8 million of them live below the poverty line.
Salaries: average salary is not an indicator for the majority
According to the State Statistics Service, the average salary in the first quarter of 2025 increased by 24.1% to UAH 23,460 per month, which is about $564 in dollar terms. But a significant number of citizens receive much less: the average salary per month is UAH 14.2 thousand ($342).
For example, a teacher with no experience receives 7,300 UAH after taxes, which is about $175 or 243 UAH per day. Thus, this teacher spends less than $8.30 per day (or less than UAH 345 per day), and is therefore considered to be living below the poverty line.
It should not be forgotten that food prices in Ukraine have already reached European levels, but salaries have not. For example, a basic food package in Italy costs UAH 831, while in Ukraine it costs UAH 783, and an Italian earns five times more. And the proxy indicator of poverty – the share of people surveyed who have to save on food – rose to 25.2% in June 2025.
The number of poor people has almost doubled
According to the estimates of Danylo Hetmantsev, Chairman of the Verkhovna Rada’s Finance Committee, the poverty rate in Ukraine has almost doubled over the past three years to 37%. He emphasized that this significant figure is provoked by the war, as all economic processes in the country are negatively affected by the war.
At the same time, Mr. Hetmantsev predicts that the end of hostilities may cause a reverse trend. However, according to him, it is not enough to wait for peace. “We need to start discussing the issue of the living wage today.
We must honestly calculate the subsistence level. And tell people: today we cannot provide it, but we will show a plan for when and how we will reach this level,” he said in an interview with Novosti.LIVE.
According to him, the state has no right to pay social benefits less than the subsistence level, as this is a violation of the Constitution. He suggests:
- separate the subsistence minimum from the calculation of officials’ salaries and fines;
- make it realistic;
- gradually achieve this level by de-shadowing the economy and using budget funds more efficiently.
However, the Budget Declaration for 2025-2027 stipulates that the minimum wage and subsistence minimum will remain at the level of 2024 until 2028. This may limit the growth of social standards, which will affect the living standards of socially vulnerable groups.
The budget declaration adopted by the government stipulates that the minimum wage and subsistence minimum will remain at the level of 2024 for 2025-2027. This may lead to a decrease in the purchasing power of the population, especially those who receive the minimum wage or social benefits,” economist Svitlana Mishchenya said in a commentary
As explained, the decision is due to the need for fiscal consolidation in the context of martial law and economic uncertainty.
Worse is to come
According to sociologist Yuriy Havrylechko, the poverty rate in Ukraine will continue to grow and reach several million more people. He believes that the government should not only fight poverty, but also improve the welfare of citizens by cutting taxes, encouraging small businesses, and refusing to destroy kiosks.
If nothing is changed in fiscal, regulatory and economic policies, if approaches to solving the problem are not changed, the situation will only get worse. For example, despite claims of a shortage of qualified personnel, businesses are unwilling and unable to pay them decent wages…” Yuriy Havrylechko emphasizes in an interview with
[Kommersant] .
He also emphasizes that Ukrainian business has been oriented toward the foreign market, where there are high demands with low wages, and tax increases further complicate the situation. Small businesses are being destroyed – jobs are disappearing.
And officials are doing well
While millions of Ukrainians are counting the pennies from paycheck to paycheck, social benefits or pensions, officials’ salaries continue to grow. According to MP Nina Yuzhanina, the average salary of a civil servant is three times higher than the national average, and directors of central government agencies receive almost sixteen times more.
In June, 502 heads of central government agencies received more than UAH 64 million, or an average of UAH 127,990 per person.
Author – Alla Dunina
Читайте нас у Telegram: головні новини коротко
