Ukraine plans to raise the minimum wage: what amounts are involved
24 February 2025 17:10
Ukraine plans to raise the minimum wage from UAH 8000 to UAH 11184 this year. This is stated in the draft law No. 12462 of January 3, 2025, reports "Komersant Ukrainian".
The draft law was initiated by Yulia Tymoshenko and a number of other MPs.
The explanatory note to the document states that the Law of Ukraine “On the State Budget of Ukraine for 2025” extended the approval of subsistence minimums in significantly lower amounts than the expected actual subsistence minimums. In addition, the subsistence minimums have not been increased since January 2024, despite inflation. Therefore, MPs propose to increase the minimum wage as early as April 1, 2025.
How the minimum wage will increase from April 2025
“The minimum wage is to be revised three times: from April 1 to UAH 9,100 (UAH 55 per hour), from July 1 to UAH 10,100 (UAH 61 per hour), and from October 1 to UAH 11,184 (UAH 68 per hour).
The law also provides for an increase in the subsistence minimum and minimum pensions: the minimum pension in Ukraine is currently UAH 2,361. From April 1, it will increase to UAH 3,407, from July 1 – to UAH 4,808, and from October 1 it will exceed UAH 7,000.
The subsistence minimum per child will also change. For children under 6 years of age, it will amount to UAH 3,627 from April 1, UAH 5,110 from July 1, and UAH 7,533 from October 1. For children aged 6 to 18, the minimum wage will be UAH 4,571 from April 1, UAH 6,451 from July 1, and UAH 9,467 from October 1.
What is needed to increase the minimum wage in Ukraine
According to forecasts, additional expenditures for the implementation of the draft law from the budgets of all levels in 2025 will amount to about UAH 299.9 billion, which can be financed by additional revenues to the budgets of all levels as a result of preventing tax and fee evasion, as well as using humanitarian aid, grants from foreign countries, and by reducing the cost of servicing the public debt in the amount of about UAH 190 billion.
Experts note that such an increase could have a positive impact on the purchasing power of the population and stimulate economic growth. However, there are concerns about a possible increase in the tax burden on employers, especially in times of economic instability. Earlier, the government planned to freeze the minimum wage at UAH 8,000 until 2027, which drew criticism from trade unions and economists. They pointed to the need for regular indexation of citizens’ incomes in line with inflation and rising costs of living. The adoption of the draft law No. 12462 may be a compromise solution that takes into account the interests of both employees and employers.
It should be noted that the final decision to raise the minimum wage will depend on the outcome of the draft law’s consideration by the Verkhovna Rada and further actions by the government.
