Anticipated Minimum Wage Hike in Ukraine by 2026: What's on the Table?
Ukraine to Gradually Increase Minimum Wage Over Three Years
Ukraine has announced plans to increase the minimum wage over the next three years, starting in 2026. The gradual increase is outlined in the 2026–2028 budget declaration.
The minimum wage in 2026 is set to rise by approximately 685 UAH, bringing it to 8,688 UAH, according to the declaration. However, specific increases for 2027 and 2028 have not been detailed numerically.
The minimum subsistence level, which serves as a legal floor for the minimum wage, is projected to be 2,564 UAH in 2026, rising to 2,715 UAH in 2027 and 2,859 UAH in 2028. Currently, the minimum wage is significantly higher than the subsistence level, and the plan is to maintain or increase this gap.
The minimum wage increase aligns with a broader goal of uplifting overall earnings and social protection in Ukraine's economic planning for 2026–2028. The plan also aims to improve the standard of living and reduce the gap between minimum and average income.
In addition to the gradual increase, the government has proposed a principle of automatic indexing for the minimum wage. This mechanism is intended to help maintain the purchasing power of earnings and avoid prolonged periods without indexing. The automatic increase will be based on the inflation level.
The trade unions have agreed upon the increase in the minimum wage in 2026. The minimum wage is further planned to reach 9,374 hryvnias by 2027 and 10,059 hryvnias by 2028.
Economists suggest that the long-term plan allows businesses to adapt their financial strategies in advance to future changes. This is particularly important for companies where a significant portion of expenses is labor costs.
The increase in the minimum wage is part of the state budget preparation, and the automatic indexing is expected to help ensure more stable protection for workers against the devaluation of their incomes in the face of economic fluctuations.
| Year | Minimum Subsistence Level (UAH) | Minimum Wage Increase (approximate) | Relation | |-------|----------------------------------|-------------------------------------|------------------------| | 2026 | 2,564 | +685 UAH (from 8,000 UAH base) | Minimum wage well above subsistence; gradual increase planned | | 2027 | 2,715 | Not precisely specified | Continued alignment with subsistence and wage policy | | 2028 | 2,859 | Not precisely specified | Continued gradual increase expected |
Sources:
[1] Budget declaration 2026–2028, Ukraine [2] National Bank of Ukraine [3] State Statistics Service of Ukraine [4] Ministry of Social Policy of Ukraine
The gradual increase in the minimum wage over three years, starting in 2026, is expected to improve the financial strategies of businesses that heavily rely on labor costs. The minimum wage is planned to reach 9,374 hryvnias by 2027 and further increase to 10,059 hryvnias by 2028, surpassing the minimum subsistence level.
