A quarter of your income will go to expenses: how much of your salary will remain “clean”

All officially employed citizens of Ukraine are taxpayers whose salaries are deducted and used to finance state needs, such as social benefits, defense, wages, and infrastructure projects. The State Tax Service reports this.

According to current legislation, two central taxes are withheld from salaries:

Personal income tax (PIT) – 18%;

Military levy – 5%.

Therefore, the total tax rate is 23% of the accrued salary. It is also important to note that all goods purchased by Ukrainians, including food, are subject to a 20% value-added tax (VAT), although this tax is typically not included in the total cost.

Let’s look at an example of the calculation.

If an employee receives a minimum salary of 8,000 hryvnias, he will pay:

PIT – 1,440 hryvnias;

Military levy – 400 hryvnias.
As a result, after deducting taxes, the employee will receive 6,160 hryvnias “in hand.”

Additionally, the single social contribution (SSC) is paid by the employer separately from the accrued salary and is equivalent to 22% of the minimum wage. This contribution is used to finance the Pension Fund and other social funds and also affects the accrual of insurance experience.

Currently, to qualify for one month of insurance experience, the employer is required to pay at least 1,760 hryvnias, based on the minimum salary of 8,000 hryvnias. Thus, the total cost of paying the minimum wage to the employer is 9,760 hryvnias.

Additionally, we recall that earlier, it was reported about benefits for specific categories of passengers on Ukrzaliznytsia trains. It is also worth noting that the authorities plan to tighten control over individual entrepreneurs in areas such as IT, manicure services, and trade.