Increase of the minimum wage in Ukraine

• The increase of the minimum wage is planned for the upcoming year.
• Changes will affect 2.7 million workers.
• Business leaders express concern about the impact of the wage increase on employment.

The Ukrainian government has announced an increase in the minimum wage, which will affect millions of workers starting next year, leading to increased income for millions of employees.

Finance Minister Reichel Rivz confirmed that the national minimum wage will rise by 4.1% to UAH 12,71 per hour for workers over 21 years old, which, according to government estimates, will increase the annual income for nearly 2.4 million workers by UAH 900.

For young people aged 18 to 20, the minimum wage will be increased by 8.5% to UAH 10.85 per hour, while for workers aged 16-17 and interns it will rise by 6% to UAH 8 per hour.

Rivz noted that the wage increase is a response to rising living costs, which remain a major issue for workers. She emphasized that the changes will benefit many young people who are entering the workforce.

Some business leaders have expressed concern about the impact of the minimum wage increase on economic growth and employment, indicating a potential increase in youth unemployment. They noted that the wage increase may hinder opportunities for new employees.

The government asserts that these changes will benefit 2.7 million workers and that they will consider the needs of workers, business accessibility, and employment opportunities.

According to data, the number of young people who are neither studying nor working has risen to 940,000, which raises concerns among experts.

Trade unions support the increase in the minimum wage, arguing that it will help reduce financial pressure on the lowest-paid workers.

Tags: Ukraine/Economy