New minimum wage in Ukraine - what will the amount be and what will change.

In the coming year, Ukrainians who receive the minimum wage will see only a slight increase - by 688 hryvnias to 8,688 hryvnias. This may not even be enough to cover basic expenses.

According to official data, about 1.5 million Ukrainians earn the minimum wage. They are often paid 'in two stages': officially and partially in cash, to reduce taxes. As a result, even managers at many enterprises receive about 8,000 hryvnias.

When to expect an increase in the minimum wage

According to the new budget project for the next three years, the minimum wage is expected to increase by 685 hryvnias. However, due to inflation, there may be no real benefit from this. Gleb Vishlinskiy, Executive Director of the Center for Economic Strategy, notes that the increase in the minimum wage will only be a formal reduction, financed by budget funds that will also increase due to inflation.

The minimum wage is a social guarantee, which is a standard in most European countries and usually amounts to 50-60% of the average salary in the country.

Ukrainians who receive the minimum wage may not feel a real improvement in their financial situation due to the increase in this guaranteed amount, which does not compensate for the rising cost of living and inflation.