Minimum wage in Ukraine increases in 2024

The State Budget for 2024 (Law 3460-IX) has been officially released by Ukraine, receiving approval on 28 November 2023. While the legislation does not introduce specific tax measures, it does establish crucial benchmarks such as the minimum monthly wage and minimum subsistence levels, which carry implications for certain tax calculations. Notable points from the law include:

Effective from 1 January 2024, the minimum wage is fixed at UAH 7,100 per month, and this amount increases to UAH 8,000 per month from 1 April 2024.

Commencing 1 January 2024, the general minimum subsistence level is set at UAH 2,920. Distinct levels are also specified for various categories of individuals.

For employers, a pivotal parameter is the minimum wage, serving as the foundational element for determining the monthly cap on social security contributions. This cap is equivalent to 15 times the minimum monthly wage, amounting to UAH 106,500 based on the UAH 7,100 minimum wage. As of April 2024, with the UAH 8,000 minimum wage in effect, the cap rises to UAH 120,000.

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