Business news from Ukraine

Business news from Ukraine

Ukraine’s 2024 budget envisages raising minimum wage to UAH 7100 from January 1

3 September , 2023  

The minimum wage in Ukraine may be raised to UAH 7100 from January 1, 2024, and from July 1 – to UAH 8000 per month from the current UAH 6,700 per month, First Deputy Finance Minister Denis Ulyutin said at an online meeting with all-Ukrainian associations of local governments and finance departments of regional state administrations and Kyiv City Council to discuss the main indicators of the state budget.
As the Ministry of Finance reported on its website on Friday, during the budget forecasting it is also planned to increase from January 1, 2024 to 3195 UAH per month the forecasted salary of the employee of the I tariff category of the Unified Tariff Schedule, frozen from December 1, 2021 at the level of 2893 UAH.
And at the end of May this year, the Ministry of economy proposed to increase the minimum wage from 2024 by 14.2% – up to 7651 UAH, and the size of the official salary of the employee of the І tariff category of the Unified tariff grid to 3443 UAH.
“In 2024 to support local governments will continue to provide almost 24 billion UAH of additional subsidy from the state budget to local budgets for the most affected frontline and frontline territories. The basic subsidy from the state budget to local budgets for the next year is projected in the amount of UAH 20.2 billion,” Ulyutin also said.
In addition, Deputy Finance Minister Roman Yermolichev pointed out that from January 1, 2024, remuneration of civil servants will be based on the classification of civil service positions and the system of grades. According to him, this will allow to introduce transparent conditions of labor remuneration in the system of public authorities.
Regarding the educational subvention, he said that now the resource for it, taking into account the increase in social standards, is taken into account, but without distribution to the territories, because the indicators from the Ministry of Education are expected after September 5.
“Expenditures on the health sector will be reimbursed from the state budget, the subvention to support individual medical institutions is retained for next year. As for the social sphere, it should be noted that we are now working on a mechanism to determine a unified model of co-financing of social services under martial law and laying the resource for the social project “Veteran’s Assistant”, – added Yermolichev.
It is indicated that during the discussion were also discussed the issues of balances on the accounts of local budgets, distribution of personal income tax from the military, features of horizontal equalization of tax capacity of local budgets, as well as the main approaches and problems of distribution of inter-budget transfers under martial law.

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