Officials see no reason to raise the minimum wage
Trade unions in Ukraine have appealed to the Cabinet of Ministers with a proposal to revise the subsistence minimum and the minimum wage, focusing on the economic results of the first half of 2025. They believe that such an increase will not only improve the well-being of citizens but also become a driving force for economic recovery.
Currently, the minimum wage in Ukraine is 8,000 hryvnias, but after paying taxes, the employee’s account remains approximately 6,160 hryvnias. The unions officially submitted their proposals to the government in July, calling for changes to the 2025 state budget, specifically to increase social payments for displaced persons.
However, the Ministry of Finance refused to revise the budget, arguing that there are currently no grounds for such a step, given the potential risks to the economy. They noted that: “We do not see any grounds for increasing the subsistence minimum and the minimum wage at this time.”
The reasons why the government is not ready to raise salaries now are:
- the possibility of additional burden on employers;
- the need for additional budget expenditures;
- the risk of increasing “envelope” payments that circumvent taxes.
The Ministry of Economy also emphasized that any increase in the minimum wage must be justified and that negotiations with businesses should precede a decision. However, trade unions are convinced that raising wages and social standards:
- will contribute to improving the purchasing power of the population;
- will bring Ukraine closer to European standards;
- will help return some labor migrants home;
- In the future, it will increase the income of the state and the Pension Fund.
At present, the decision to raise the minimum wage by the fall has not been made, as it depends on the economic situation, consultations with businesses, and the government’s political will.
Recall that previously, Ukrainians were promised salary indexation, but many people perceived this with distrust, as the situation remained difficult, including regarding the financing of pension payments.
