Salary growth for Ukrainians in 2025 will not save them from poverty.
Wages in Ukraine are set to increase by 10.5% next year, averaging 24,300 UAH. However, due to an inflation rate of 9.5%, the real income growth will be only 1%. The situation regarding the minimum wage is particularly dire, as it will be frozen at 8,000 UAH. This means that the most vulnerable workers will lose 9.5% of their real income. Maintaining such a position on the minimum wage threatens the necessary income level for workers.
Compared to 2017, when the minimum wage doubled (from 1,600 to 3,200 UAH), there were no negative consequences for the economy. On the contrary, it led to positive changes: local budget revenues increased by 38%, tax revenues by 23%, and GDP grew by 0.5%.
Currently, the ratio of the minimum wage to the average wage is only 32.7-32.8%, which is significantly lower than the optimal rate of 60%.
It is also worth noting that starting in 2025, a new formula for calculating pensions for Ukrainians will be introduced.
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