Ukraine Plans to Increase Minimum Wage for Three Consecutive Years: Economic Development Strategies Until 2028
Ukraine is embarking on a significant policy shift aimed at gradually raising the minimum wage over the next three years. According to Member of Parliament Yaroslav Zheleznyak, these plans are incorporated into the budget declaration for 2026-2028, which the government released after extensive consultations with the IMF. The document outlines an annual increase in the minimum wage, averaging around 600 hryvnias per year. Specifically, from January 1, 2026, the minimum wage is set to reach 8,688 hryvnias; in 2027, it will rise to 9,374 hryvnias; and from January 1, 2028, it is planned to be 10,059 hryvnias. This represents a substantial growth compared to the current minimum wage of 8,000 hryvnias, established in April 2024. On June 27, the Cabinet of Ministers approved the budget declaration for 2026-2028, defining key parameters and goals of the country's fiscal policy for the medium term. The document became the result of prolonged negotiations with the IMF and will serve as the foundation for drafting the national budget for 2026. It sets out expenditure limits, expected revenue, living wage levels, and other critical policy objectives. Notably, the declaration includes two possible scenarios: one assuming improved security conditions from 2026, and another considering the continuation of the full-scale war, which would necessitate sustained high expenditures on defense and security sectors despite economic challenges.