The difference of over 1000%: how the minimum wages of Ukraine and the EU differ.

Ukraine lags behind the European Union countries in terms of legally established minimum wage. According to data, the Ukrainian figure is 181.65 euros, which is the lowest among European countries. According to the Law 'On the State Budget of Ukraine for 2025', the minimum wage will remain at 8000 hryvnias, with an hourly rate of 48 hryvnias. It is planned to freeze this figure until 2027. The Minister of Finance explained this decision by the limited financial capabilities of the state. Due to tax deductions, the real amount that employees receive 'in hand' will decrease from 6440 to 6160 hryvnias in 2025. Even the lowest minimum wage in Poland exceeds the Ukrainian figure by 2.5 times. In Luxembourg, the minimum wage is the highest in Europe, exceeding the Ukrainian figure by more than 14 times.

In 2022, the European Parliament approved new rules regarding the minimum wage for EU workers. In six EU countries, the minimum wage is determined not by law, but by collective agreements. Increasing the minimum wage may have a positive impact on income levels and economic growth, but it may also lead to job cuts, especially among low-skilled workers.