In Ukraine, the minimum wage will be increased by only UAH 688 in 2026. And this despite the fact that in 2025 the minimum wage was not revised at all. Such an increase will lead to an even greater gap between how much money an adult needs to meet basic needs and the size of the minimum wage.
The Cabinet of Ministers was unable to convince its partners of the need for a more significant increase in wages. In order to save budget funds, they decided to conduct a de facto minimum indexation. But in reality, such a decision only perpetuates poverty.
Read about what the minimum wage should be and why the government’s decision will not help Ukrainians in the material of OBOZ.UA.
How many Ukrainians receive the minimum wage
Officially, about 1.5 million workers in Ukraine live on the minimum wage. Most of them receive their salary in two parts: the first is the official minimum wage, the second is unofficial, in an envelope. This allows the employer to pay less taxes. As a result, there are hundreds of companies in which 8 thousand Even the head of the enterprise earns UAH.
For example, now the Zhytomyr Regional Library for Children and Youth invites a librarian with higher education and work experience to work for a salary of UAH 8,000. There are more than 11,400 such vacancies on the portal of the State Employment Center alone. From UAH 8,000 to UAH 10,000 – more than 25,800 vacancies. Mostly such salaries are offered to state employees in small settlements.
The minimum wage is a social guarantee. It is established in most European countries. There are several methods for calculating the minimum wage. The EU Directive 2022/2041 on the adequacy of minimum wages recommends setting the minimum wage at 50-60% of the median wage. The median is the “correctly calculated” average wage. This is the salary that is in the middle of the salary range.
For example, if we take four employees, among whom one (the director) receives 50 thousand UAH, and three – 10 thousand UAH, the average will be 20 thousand UAH. Such an average salary actually gives the wrong idea that the majority of employees on the list receive exactly this amount. However, in reality, three out of four earn exactly half as much – 10 thousand UAH, and one high salary “distorted” the statistics.
To prevent such generalizations, the median salary is used – in the mentioned case it will be 10 thousand UAH. On the one hand, the median salary does not take into account the smallest and largest salaries (because only the one that is exactly in the middle of the salary list in size is taken), but it demonstrates what salary the majority of employees can expect.
For example, according to work.ua, the median salary in Ukraine as of July 2025 is as much as 25 thousand UAH. This salary is calculated from 193.3 thousand posted vacancies. However, in reality, in some cases, several employees are looking for one posted vacancy at once. In addition, employers often do not indicate the salary at all. And in some industries, as well as in small settlements, employees are often found without the help of recruitment portals.
Another factor that may partially distort the work.ua statistics is the difference between salaries in vacancies and those currently paid to employees. Due to the fact that some companies do not have annual salary indexation, new employees may be offered higher salaries than those who are already working.
The Pension Fund shows completely different statistics. It takes into account only those salaries from which a single social contribution has been paid. And according to their data, as of June 2025, Ukrainians earn an average of UAH 20.3 thousand. This statistics does not take into account salaries in envelopes at all.
What should be the minimum wage to be enough to live in Ukraine
The minimum wage cannot be less than the subsistence minimum. In Ukraine, the subsistence minimum is calculated from the cost of the consumer basket. It includes a minimum set of goods and services. For example, the basket provides for one demi-season jacket for a pensioner for as long as 8 years, for an employee – for 5 years. One pair of swimming trunks should last an employee for four years, for a pensioner – for 10.
That is, in fact, the basket does not meet real needs. The cost of this basket in May prices is 11,259 UAH. That is, everyone who earns less than 11.2 thousand UAH is below the poverty line and cannot afford even a basic set of goods and services. A working Ukrainian may receive less than what is needed to survive.
If we use European recommendations, the minimum wage should now be at least about 12 thousand UAH (this is half the median salary). Moreover, the minimum wage cannot be less than 11.2 thousand UAH, otherwise it contradicts the very principle of establishing social guarantees.
The Federation of Trade Unions appealed to the government with a proposal to establish the minimum wage from January 1, 2026 at a level not lower than 50% of the projected average monthly salary of employees at the end of 2025. This is a minimum wage of approximately 12,195 UAH.
OBOZ.UA interlocutors in the government say: The budget declaration was agreed with international partners and creditors, so
Even raising the minimum wage by 688 UAH required some effort. They say that a higher minimum wage means higher spending on state employees and a larger budget deficit. However, in fact, the experience of past years has shown that an increase in the minimum wage immediately leads to an increase in revenues from taxes and fees. This is a necessary step not only to ensure at least a minimum standard of living for workers, but also a way to bring at least part of the salaries out of the shadows.
What is the minimum wage paid in neighboring countries?
Ukraine has the lowest minimum wage in Europe. As of January 2025 (updated data is expected at the end of July), Eurostat published the minimum wage in a number of countries that have established social guarantees. Ukraine is in last place.
At the beginning of this year, the minimum wage in euros was 182 euros (at the beginning of July, it was already 163 euros). At the same time, in Moldova, people earn from 285 euros.
What minimum wage will be paid
“A national minimum wage usually applies to all workers, or at least to the vast majority of workers in a country. It is set by law, often after consultation with social partners, or directly by a national inter-industry agreement,” Eurostat notes.
The minimum wage in the EU ranges from €551 per month in Bulgaria to €2,638 per month in Luxembourg. As of January 1, 2025, 22 out of 27 EU countries had a national minimum wage. There are 5 EU countries that do not have a national minimum wage: Denmark, Italy, Austria, Finland and Sweden.
Ukraine continues its movement towards European integration. One of the tasks is to gradually achieve European wage standards. Without this, it will be extremely difficult to return home Ukrainians who are already working abroad. Cheap labor no longer serves as an economic advantage. This only contributes to labor migration against the background of an already difficult demographic situation.
