On August 25th the Ukrainian Parliament approved amendments to “On Amendments to the Law of Ukraine On the State Budget of Ukraine for 2020” initiated by the President of Ukraine Volodymyr Zelenskyy. The amendments include a project to increase the national minimum wage, starting from an increase to 5000 UAH per month from September 1st 2020.
The Ukrainian government expects the measure to bring an additional annual tax revenue of UAH 0.5 billion. “In general, the proposed changes will stimulate the growth of consumer demand, will ensure the de-shadowing of “gray” wages. This will allow to increase the budget revenues of the Pension Fund, strengthen the stability of the budget and the pension system, as well as improve the protection of labor and social rights of citizens,” said Serhii Marchenko, Ukraine´s finance minister.
According to President Zelenskyy, “There will be the second phase of this program – an increase to UAH 6,000 from 2021. And during 2021 there will be the third phase. We will increase to UAH 6,500″.
We remind that businesses are required to pay their foreign employees a minimum salary of 10 times the minimum wage, unless the employees are end beneficiaries of the enterprise or fulfill certain other special categories.
