Pension Fund Proposes New Formula for Average Wage Calculation: Who Will Be Affected.

Revamping the Method for Calculating Average Salaries

According to Novyny.live: A proposal to overhaul how average wages are calculated for determining insurance payouts has been put forward in Ukraine. The changes specifically target individual entrepreneurs and other self-employed individuals. The initiative, introduced by the Pension Fund of Ukraine, aims to strengthen the social protection system. This move is part of broader efforts to modernize the country's social safety net.

The suggested adjustments are outlined in a draft resolution titled 'On Approving the Procedure for Sending Notifications of Identified Violations and Demands for Compensation of Insurance Amounts Based on Sick Leave Certificates.' Under the new plan, the scope of insured persons would be expanded to include:

• individual entrepreneurs,
• people engaged in independent professional activities,
• members of family farms.

This step is designed to ensure fairer reimbursement for medical expenses and social benefits for these population groups.

Changes in Income Calculation

Additionally, the new approach to calculating income for individual entrepreneurs involves altering the 'formula' for the minimum wage. Under the updated Labor Code, the minimum wage would become derived from the country's average salary. These changes could positively impact the level of social benefits and support the growth of self-employment in Ukraine.

In 2026, certain cultural workers are planned to receive an additional 15% on top of their base salary, reflecting the state's efforts to improve working conditions and social protection in that sector.

The proposed reforms could significantly affect the financial well-being of individual entrepreneurs and self-employed individuals, who often have limited access to traditional social guarantees. Broadening the pool of insured persons and refining the wage calculation mechanism may lead to higher social benefit levels and greater financial stability for these groups.

This also underscores the government's push to enhance labor conditions and social security across Ukraine, a crucial step in the context of economic development and social equity.