In the draft state budget for 2026, the Cabinet of Ministers of Ukraine proposes to increase the minimum wage from 8,000 to 8,688 UAH. However, even after this increase, this figure will remain significantly lower than the actual subsistence minimum.
This is reported by Finway
Gap Between Minimum Wage and Subsistence Minimum
According to calculations by the Ministry of Social Policy, the actual subsistence minimum for working-age individuals as of May 2025 is 11,259 UAH. This means that to meet basic needs, an adult person requires over 11,000 UAH per month. Even after the increase in the minimum wage, Ukrainians working full-time and earning the minimum wage will remain below the poverty line.
“Thus, in order to purchase the essential goods and services necessary for physiological survival, an adult person needs more than 11,000 UAH.”
Government Plans and Union Proposals
According to the Budget Declaration, the following phased increases in the minimum wage are planned:
- from January 1, 2026 — 8,688 UAH;
- from January 1, 2027 — 9,374 UAH;
- from January 1, 2028 — 10,059 UAH.
At the same time, the Federation of Trade Unions of Ukraine insists on setting the minimum wage from January 1, 2026, at no less than 50% of the projected average monthly salary of workers at the end of 2024 (approximately 12,195 UAH). The unions also propose to focus on the actual subsistence minimum, taking into account the projected consumer price index.
This approach, according to the unions, aligns with European standards, particularly Directive (EU) 2022/2041 on adequate minimum wages, and will contribute to increasing purchasing power, bringing people back to the Ukrainian labor market, as well as boosting budgetary and pension revenues.
Special attention is given to employees in the budget sector. It is proposed to set the salary (tariff rate) of a first-grade employee of the Unified Tariff Scale at the level of the minimum wage, but not lower than the actual subsistence minimum for working-age individuals, taking into account the projected consumer price index.