Ukraine

The government plans to increase the minimum wage in 2026-2028

Cabinet of Ministers of Ukraine approved The budget declaration for 2026–2028, which lays down key economic guidelines, including the indexation of the minimum wage. According to preliminary calculations, in 2026 the minimum wage may increase to 8,688 hryvnias per month.

This indicator is defined as one of the basic social standards affecting the amount of salaries, taxes, social benefits and benefits. Compared to the current level of 8,000 hryvnias, the planned increase is 688 hryvnias.

The Cabinet emphasizes that this is another step in the policy of gradually increasing state social guarantees. Such growth can be especially felt for workers with the lowest incomes — in the public sector, service and entry-level positions in the private sector.

Currently, the minimum wage in Ukraine remains fixed and is mandatory for all employers. The government regularly reviews its size within the framework of budget planning for the following years. It is expected that the new limit of UAH 8,688 will be included in the state budget for 2026 after the approval of the relevant law in the fall.

Trade unions have already criticized the government’s initiative, stressing that it does not meet European standards. In particular, they demand that the amount of the minimum salary is at least half of the projected average salary in the country, which means at least UAH 12,195. In their arguments, trade union organizations refer to the EU Directive on the appropriate minimum wage, which Ukraine must adapt within the framework of European integration obligations.

The government, for its part, explains the modest increase in the difficult financial situation, martial law and limited budget resources. According to officials, the priority is to maintain macroeconomic stability, not a sharp increase in social standards, which could provoke additional pressure on the treasury.

See also  A phased plan for the exchange of prisoners between Ukraine and the Russian Federation in the "1000 for 1000" format has been agreed upon

Economists caution, however, that when the minimum wage remains below the actual living wage, it points to a systemic problem — it is de facto fixing poverty, not protecting against it. Such a situation, in their opinion, demotivates people to return to the Ukrainian labor market, especially in conditions of high labor migration and a shortage of qualified personnel.

We will remind you that the issue of reviewing approaches to the formation of the minimum wage in Ukraine has become relevant in the context of negotiations with the EU and the implementation of the Association Agreement, which provides for the gradual approximation of labor standards to European ones. In its current form, the proposed minimum wage may be subject to criticism not only from domestic trade unions, but also from European partners.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Back to top button