The Ukrainian government intends to raise the minimum wage in 2026 from 8000 to 8666 UAH, representing an increase of 8.6%. This decision aims to partially compensate for the expected inflation rate in 2026.
This is reported by Finway
The minimum wage will remain below the subsistence minimum
However, experts emphasize that even with this increase, the pace of growth in the minimum wage remains insufficient. According to calculations, to truly cover inflationary losses, the growth rate should be at least twice as high, especially considering that in 2025, there is no planned indexation for the minimum wage.
It is worth noting that even after the increase, the minimum wage will still be lower than the actual subsistence minimum, which was over 10.6 thousand UAH in February 2025 and currently exceeds 11 thousand UAH. This means that workers earning the minimum wage will effectively be living below the poverty line, as the subsistence minimum defines the cost of a basic set of goods and services for living.
Trade unions propose increasing the minimum wage to 50% of the average salary
The Federation of Trade Unions of Ukraine has submitted its proposals to the state budget, demanding that the minimum wage be set at no less than 50% of the projected average salary level for employees at the end of 2025, starting from January 1, 2026. According to their calculations, this should be around 12,195 UAH.
“This position, in particular, takes into account Ukraine’s accelerated movement towards the EU and the provisions of Directive (EU) 2022/2041 on adequate minimum wages in the European Union; the agreements of paragraph 2.6 of the General Agreement; support for the purchasing power of workers, encouraging people to return to the Ukrainian labor market, and increasing revenues to budgets and the Pension Fund of Ukraine,” the trade unions state.
At the same time, the trade unions acknowledge that the implementation of such demands currently seems unlikely. If the provided calculations are used in the development of the Budget Declaration, the minimum wage in Ukraine will continue to remain below the actual subsistence minimum for several years to come.