Minimum wage and minimum pension have been raised in Ukraine from September 1. On August 29, President Volodymyr Zelensky signed Law “On Amendments to the Law of Ukraine on the 2020 Ukraine State Budget” No. 822, which parliament had passed at an extraordinary session on August 25.
Minimum wage from September 2020: details
It has been raised to UAH 5,000 per month.
The increase is the first stage of the further gradual raise process. The second phase will be an increase from 2021 to UAH 6,000, while throughout 2021, minimum wage should increase to UAH 6,500.
At the same time, taking the growth into account, the Cabinet of Ministers on August 26 made a decision to increase from September 1, 2020, the size of the official salary (tariff rate) of a public sector employee by UAH 2,225.
Raising the minimum wage in Ukraine: background
The minimum pension has increased by UAH 110.8 starting September 1 – up to UAH 2,000 – as a result of the minimum wage growth.
It’s the minimum wage that forms the basis for increasing the minimum pension for non-working pensioners who have reached the age of 65 and have an insurance record of 35 years for men and 30 years for women.
Minimum pension: details
- The minimum pension for retirees with full insurance experience will increase from UAH 1,889.20 (UAH 4,723 x 40%) to UAH 2,000 (UAH 5,000 x 40%).
For working pensioners, recalculation of pensions using the new minimum wage shall be carried out after their dismissal or termination of their entrepreneurial activity.