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Publication date: 22.05.2024
Increase of the minimum wage in Ukraine from April 1, 2024: main aspects and consequences
In accordance with Article 8 of the Law of Ukraine "On the State Budget of Ukraine for 2024", the minimum wage has been increased since April 1 of this year. This move is aimed at improving the welfare of citizens and adapting to changing economic conditions. Let's take a closer look at the main aspects of this increase and its consequences for various segments of the population and business entities.
The new amount of the minimum wage
From April 1, 2024, the minimum wage in Ukraine will increase to:
UAH 8,000 per month
UAH 48 per hour
This increase is a significant step compared to the previous level of the minimum wage, which was UAH 7,100. This decision was adopted by the government at a meeting on March 29, where Prime Minister Denys Shmyhal emphasized the importance of this step for improving the living conditions of Ukrainians, in particular working pensioners.
Impact on the single social contribution (SSC)
The increase in the minimum wage will also affect the size of the single social contribution (SSC) for individual entrepreneurs (PSO). In particular, the EUV will increase from UAH 1,562 to UAH 1,760. This increase is due to the fact that the EUV is calculated from the minimum wage, and any increase in it automatically leads to an increase in the size of this contribution.
Impact on court-ordered payments
The law on the state budget also determines the amount of the minimum wage, which is used as a calculation value for calculating payments based on court decisions. In 2024, this amount is set at UAH 1,600.This means that when calculating the amounts of payments based on court decisions, this value will be used, which ensures a certain stability and predictability in legal and financial matters.
Social benefits for pensioners
During the government meeting, Prime Minister Denys Shmyhal also noted that from April 1, payments for working pensioners will be increased. This is an important step to support retirees who continue to work, as the increase in the minimum wage directly affects the size of their benefits.
Economic context and expected consequences
An increase in the minimum wage has several important economic and social consequences:
Raising the standard of living: An increase in the minimum wage helps improve the financial situation of workers, especially those who earn the minimum wage. This helps to reduce the level of poverty and increase the general level of well-being of the population.
Growth in consumption: An increase in the income of the population contributes to the growth of consumption, which has a positive effect on the economy as a whole. Increasing the solvency of citizens stimulates the demand for goods and services, which, in turn, promotes business development.
Impact on Business: An increase in the minimum wage can create additional costs for employers, especially for small and medium-sized businesses. This may lead to the need to review costs, optimize processes or even cut jobs in some cases.Social security: An increase in the minimum wage also has a positive effect on the social security of workers, since many social benefits and compensations are calculated on the basis of the minimum wage. You may be interested in the following articles: lawyer advice, legal advice, document analysis, legal analysis of the situation, written consultation, verification of documents by a lawyer, lawyers documents, lawyer's help online, lawyer online, legal opinion, lawyer's legal opinion, lawyer online.
Conclusion
The increase of the minimum wage to UAH 8,000 from April 1, 2024 is an important step for improving the socio-economic situation of Ukrainian citizens. This decision, adopted by the government, will contribute to the improvement of the standard of living, the growth of consumption and the strengthening of social guarantees for workers. However, it also requires business to adapt to new conditions that involve an increase in labor costs. In general, this step corresponds to the government's efforts to ensure economic stability and social justice in Ukraine.
