Ukraine Prepares to Raise Minimum Wage: Will It Help Reduce Poverty Levels?
Next year, Ukraine is expected to implement a significant increase in its minimum wage, which could have far-reaching effects on the social landscape of the country.
According to official information cited on Oboz.ua, referencing a letter from the Ministry of Finance to the main recipients of the state budget funds, starting January 1, 2024, the minimum wage will be set at 8,647 hryvnias compared to the current figure of 8,000 hryvnias.
Furthermore, in 2025, the minimum wage will rise again to 9,347 hryvnias, and by 2026, it is projected to reach nearly 10,000 hryvnias.
This gradual increase indicates a proactive government effort to improve the income levels of low-wage workers.The documents from the Ministry of Finance also specify that in planning the 2026–2028 budget, they are considering contemporary macroeconomic scenarios, notably Scenario 2, which assumes a prolonged period of military engagement and the resulting economic challenges.
Despite these difficulties, the government aims to schedule minimum wage hikes, factoring in potential stabilization of the economic situation.Data from the Ukrainian Pension Fund indicate a decline in the average monthly salary by nearly two thousand hryvnias, highlighting the economic hardships faced by the population.
In this context, increasing the minimum wage could prevent more Ukrainians from falling below the poverty line, although it is unlikely to resolve all economic disparities.
The actual living wage for adults in June 2025 was approximately 11,464 hryvnias, or 8,422 hryvnias after taxes, illustrating that many adults earning less than this amount are still living below the poverty threshold.
This underscores the urgent need for further social and economic reforms aimed at genuinely improving the well-being of vulnerable groups.