Ukraine increases minimum wage and pensions

As of January 1, the minimum wage in Ukraine has increased by 6%, rising from ₴6,700 to ₴7,100. 

Another increase is planned for the spring, according to Prime Minister Denys Shmyhal, Rubryka reports.

During a government meeting on January 3, Shmyhal said several social standards in Ukraine had been updated since the beginning of 2024. Specifically:

• The minimum wage has increased by 6%, from ₴6,700 to ₴7,100. Another raise is scheduled for the spring.
• The subsistence minimum has, on average, increased by 12%, reaching ₴2,920.
• The minimum pension has risen from ₴2,093 to ₴2,361, with pension indexing planned for March 1.

"Last year, the government demonstrated exemplary fulfillment of social commitments. Social payments accounted for over 12% of the consolidated budget expenditures. This year will also be one of our priorities. Pensions and aid will be paid on time. We have internal resources and support from our partners," said the government official.

Shmyhal assured Ukrainians that pensions and aid to Ukrainians would be paid on time this year.

Rubryka previously reported that if the EU and the USA do not provide promised financial assistance early next year, Ukrainian pensioners and civil servants may be left without payments. This was stated by the First Deputy Prime Minister of the Economy, Yulia Svirydenko, in a comment to the Financial Times.

Meanwhile, the Minister of Social Policy, Oksana Zhulnovych, stated that there should be no problems with pension payments in the absence of international financial assistance.

"I want to reassure pensioners who receive age pensions because part of the pension revenues distributed by the Pension Fund is our internal revenues provided by Ukrainian taxpayers, including our military personnel," Zhulnovych said.

The minister explained that since they all pay the Unified Social Tax, the Pension Fund remains stable with Ukrainian funds.

In addition, the prime minister stressed that pensions would continue to be paid on time. The indexing will take place in March 2024, as stipulated by law. According to him, salaries for teachers and doctors will also be paid on time.