Starting April 1, 2024, according to the Law “On the State Budget of Ukraine for 2024”, the minimum wage in Ukraine will increase to UAH 8 thousand. This will change the amount of certain employment-related payments, the amount of which is aligned with the minimum wage.
In particular, the maximum amount of compensation to employers will increase.
Thus, the amount of compensation for the employment of citizens who have been registered as unemployed for more than 1 month (people with disabilities, combatants and those who have no more than 5 years left before the right to an old-age pension) will now amount to UAH 8 thousand (1 minimum wage).
Compensation for the employment of young people among the registered unemployed (under 25 years of age – with less than 12 months of insurance experience; under 35 years of age – for the first job; discharged from military / alternative service – for the first job) will increase to UAH 4 thousand (50 percent of the minimum wage).
The compensation for employment of citizens who have been registered as unemployed for more than 1 month and have additional employment guarantees or have been registered for more than 6 months will increase to UAH 3,520 (double the minimum insurance premium, which is 22 percent of the minimum wage).
Compensation for the employment of internally displaced persons during martial law will amount to UAH 8 thousand (1 minimum wage) starting from April 1, 2024. At the same time, the compensation of employer’s expenses for labor remuneration of IDPs hired by the employment centers will increase to UAH 16 thousand (2 minimum wages).
The amount of partial unemployment benefits per employee or individual entrepreneur will also increase to UAH 4 thousand (50% of the minimum wage).
The maximum amount of remuneration for participation in public works will also increase and from April 1 will amount to UAH 12 thousand per month (1.5 times the minimum wage).
For reference: Since the beginning of 2024, 295 employers in the capital have used the compensation programs of the Kyiv SLC and received payments in the amount of over UAH 7 million.
compensation to employers, LAW, minimum wage, State Budget of Ukraine, WAGES
Effective January 1, 2024, the minimum wage in Ukraine increased to UAH 7.1 thousand.
In particular, according to the law “On the State Budget for 2024”, which came into force on January 1, the minimum wage increased from UAH 6.7 thousand to UAH 7.1 thousand, and the hourly minimum wage increased to UAH 42.6.
Also, as of January 1, the overall subsistence level increased from UAH 2,589 to UAH 2,920. For children under six years of age, the subsistence minimum is now UAH 2,563, for children from six to eighteen years of age – UAH 3,196, for able-bodied persons – UAH 3,023, and for persons who have lost their ability to work – UAH 2,361.
Ministry of Economy suggests raising minimum wage from 2024 to UAH 7651 a month from the current UAH 6,700, according to Federation of Trade Unions of Ukraine (FTU) at May 25 meeting of joint working commission of trade unions, employers and government on fixing minimum wage.
With reference to the Deputy Minister of Economy Tatiana Berezhnaya said that the Ministry of Economy has already sent a proposal to the Ministry of Finance.
In addition, the agency is in favor of increasing the official salary of the employee I wage rate level UTS, frozen since December 1, 2021 at the level of UAH 2893 to UAH 3443.
At the same time, it is pointed out that, according to the Ministry of Social Policy, the actual size of the cost of living for able-bodied persons in prices of April 2023 was 7782 UAH per month.
According to Berezhnaya, the Ministry of Economy is also in the process of revising preliminary indicators of macro forecast for the next budget period, which the Finance Ministry expects by June 19, 2023, as part of the preparation of the state budget 2024.
The deputy head of the FPU Vasyl Andreev and the head of the department of budget and remuneration of labor apparatus of the FPU Svetlana Makonyuk said that trade unions offer to set the minimum wage in 2024 at 9435 UAH – not lower than the actual size of the cost of living for employable persons in light of the forecast consumer price index 2023.
They also recalled that the EU recommends setting the minimum wage at 50% of the average wage
In turn, representative of the employers Sergei Bilenky noted that they expect to increase the minimum wage by 10-15% of the current level in 2024.
As reported, since October 1, 2022 the minimum wage in Ukraine increased by 200 UAH – up to 6700 UAH.
