The draft Law of Ukraine “On the State Budget of Ukraine for 2027” proposes raising the minimum wage to UAH 9,546 a month from January 1, 2027. If the figure is approved as proposed, employers will have to apply the new minimum wage both when calculating pay and the unified social contribution (USC) and when planning staff costs.
Bill No. 16000 was registered on September 15, 2026; as of September 29 it is under consideration in committee and has not yet been adopted. All the figures and calculations below are therefore based on the draft and may change during the budget process.
What could the key figures be in 2027?
The draft budget provides for:
- a minimum wage of UAH 9,546 a month;
- an hourly minimum wage of UAH 57.50;
- a subsistence minimum for able-bodied persons of UAH 3,691.
For comparison, in 2026 these figures are UAH 8,647, UAH 52 and UAH 3,328 respectively. If the bill is adopted, the minimum wage will rise by UAH 899, or roughly 10.4%, compared with 2026.
| Figure | 2026 | 2027 (draft) |
|---|---|---|
| Minimum wage, UAH per month | 8,647 | 9,546 |
| Minimum wage, UAH per hour | 52.00 | 57.50 |
| Subsistence minimum for able-bodied persons, UAH | 3,328 | 3,691 |
| Minimum insurance contribution at the 22% USC rate, UAH | 1,902.34 | 2,100.12 |
| Maximum USC base for ordinary salaries, UAH | 172,940 | 190,920 |
| Maximum USC on the maximum base at 22%, UAH | 38,046.80 | 42,002.40 |
| General tax social allowance, UAH | 1,664 | 1,845.50 |
| Income cap for the general allowance, UAH | 4,660 | 5,170 |
| Pay threshold for employee reservation (3 minimum wages), UAH | 25,941 | 28,638 |
Note: the 2027 figures are calculated from the draft. The final values will depend on the State Budget Law for 2027 as adopted and on the related changes to legislation.
What changes in payroll calculations?
The minimum wage is a state social guarantee that is binding throughout Ukraine. It sets the lowest rate of pay for completing the standard monthly or hourly workload.
This does not mean that every employee’s base salary must equal UAH 9,546, or that this is the amount an employee will take home. If an employee has completed the monthly workload but the pay accrued is below the minimum wage, the employer must top it up to that level under Article 3-1 of the Law of Ukraine “On Remuneration of Labor”.
Some payments are left out when pay is compared with the minimum wage, including extra pay for adverse working conditions and increased health risk, for night and overtime work and for work that involves regular travel, as well as bonuses for public holidays and anniversaries.
Worked example
If an employee’s accrued pay for a fully worked month is UAH 9,000, the employer has to pay a top-up of UAH 546 to bring total accrued pay to UAH 9,546. At the standard 22% USC rate the contribution comes to UAH 2,100.12 (9,546 × 22% = UAH 2,100.12), and the employer’s total cost of pay and the USC is UAH 11,646.12 (9,546 + 2,100.12 = UAH 11,646.12). In this case the USC is an additional cost to the employer and is not withheld from the employee’s pay.
For comparison, in 2026 an employee on the minimum wage costs the employer UAH 10,549.34 (8,647 + 1,902.34 = UAH 10,549.34). On the draft 2027 figures the cost is UAH 11,646.12.
The difference is therefore UAH 1,096.78 a month per employee. For 10 employees it comes to UAH 10,967.80 a month, or UAH 131,613.60 a year.
This calculation shows the difference in the employer’s costs for an employee paid the minimum wage. The example is indicative only. Actual costs depend on the pay structure, the USC rates that apply and other factors, namely bonuses, sick pay, vacation pay, a special USC rate and other payments.
What changes for part-time employees?
For part-time employees, the minimum wage guarantee applies in proportion to the workload completed. For example, for a half-time employee (0.5 FTE), the guarantee is set in proportion to the time worked.
A pro-rated minimum wage, however, does not automatically mean a pro-rated minimum USC. The contribution has to be worked out separately, taking into account whether the job is the employee’s main or secondary place of work, the time actually worked, hiring or dismissal dates, special USC rates and the rules for determining the minimum base for the contribution.
What will the minimum USC and the maximum base be in 2027?
If the standard USC rate stays at 22%, the minimum insurance contribution in 2027 on the draft figures will be UAH 2,100.12 (9,546 × 22% = UAH 2,100.12). This is the minimum contribution where the USC is charged on the minimum base. The rule itself is set out in part five of Article 8 of the Law of Ukraine “On the Collection and Accounting of the Unified Contribution to Mandatory State Social Insurance” No. 2464-VI of July 8, 2010.
In particular, at an employee’s main place of work, if they were employed for the full calendar month or worked every working day, the USC is, as a general rule, charged at no less than the minimum contribution when the actual base is lower. The rules may differ for a secondary place of work, a partial month of employment, special rates and other specific cases.
Maximum USC base
For most payments the maximum USC base is 20 minimum wages. On the proposed 2027 figure that is UAH 9,546 × 20 = UAH 190,920. The maximum contribution at the 22% rate will be UAH 42,002.40.
For certain categories, however, including military personnel and police officers as well as rank-and-file and commanding staff, the law sets a different maximum base for specified payments: 15 minimum wages. Before calculating, therefore, check the insured person’s category and the type of payment.
For example, if an employee’s USC base under the general rule is UAH 200,000, the 22% contribution will be calculated on the maximum base of UAH 190,920 and will come to UAH 42,002.40.
In 2027, then, employers need to watch both the minimum USC amount where it applies and the maximum base on which the contribution is charged.
How is the tax social allowance calculated for 2027?
The tax social allowance reduces the employment income subject to personal income tax, provided the requirements of the Tax Code of Ukraine are met. It is not an extra payment to the employee, and it does not reduce the USC base.
The general allowance equals 50% of the subsistence minimum for an able-bodied person as set on January 1 of the year concerned. If the subsistence minimum is UAH 3,691, the general allowance will be UAH 3,691 × 50% = UAH 1,845.50.
What will the income cap for the allowance be?
The income cap for applying the general allowance is the subsistence minimum for an able-bodied person multiplied by 1.4 and rounded to the nearest UAH 10: UAH 3,691 × 1.4 = UAH 5,167.40, which rounds to UAH 5,170.
An employee earning UAH 9,546 will not qualify for the general allowance, because that salary exceeds the income cap.
The allowance for employees supporting children
Where one of the parents supports two or more children under 18, that parent’s income cap for the allowance rises in proportion to the number of children. With two children, the cap will be UAH 5,170 × 2 = UAH 10,340 and the allowance UAH 1,845.50 × 2 = UAH 3,691.
So an employee earning UAH 9,546 may qualify for this allowance if the other conditions of the Tax Code are met. The allowance is applied at only one place of employment, on the basis of the employee’s application and, where required, supporting documents.
How will the minimum wage affect the pay threshold for employee reservation?
A change in the minimum wage can affect the pay criteria for employee reservation (deferment from mobilization). Under the current rules of Cabinet of Ministers of Ukraine Resolution No. 76 of January 27, 2023, “Certain Issues of Implementing the Provisions of the Law of Ukraine ‘On Mobilization Preparation and Mobilization’ Regarding the Reservation of Persons Liable for Military Service for the Period of Mobilization and Wartime,” employees liable for military service who work at critically important enterprises and institutions and are on the reservation lists must, as a general rule, receive monthly accrued pay of at least three minimum wages throughout their deferment, unless an exception applies.
If this rule remains in force in 2027, the pay threshold will be UAH 9,546 × 3 = UAH 28,638. In 2026 the corresponding figure is UAH 8,647 × 3 = UAH 25,941, so the potential increase is UAH 2,697.
Keep the two pay figures apart
The enterprise’s average accrued salary, which is used to determine its critically important status, and the pay of an individual reserved employee are different figures. Meeting one criterion does not automatically mean meeting the other. In each case, check the current version of Resolution No. 76 and the requirements for the relevant category.
When the pay threshold can be lower
For employees liable for military service at certain critically important enterprises and institutions whose location and actual operations meet the prescribed territorial conditions, Resolution No. 76 sets a special pay requirement of two and a half minimum wages. At a minimum wage of UAH 9,546 that is UAH 9,546 × 2.5 = UAH 23,865.
The 2.5 multiplier is not universal: it applies only to enterprises that meet these territorial conditions. For such enterprises, Resolution No. 76 sets the threshold at 2.5 minimum wages instead of 3 for both figures: the average salary that determines critically important status and the monthly pay of a reserved employee. A registered address alone may not be enough. You need to check where the enterprise is located, whether it actually operates there and whether the area is on the relevant list approved by the Ministry for Development of Communities and Territories of Ukraine.
Since this concerns 2027, before applying the special threshold you will need to check the version of Resolution No. 76 in force at that time and the current list of territories.
What should you check in your accounting before January?
Indexation needs particular attention. Under Article 55 of the bill, the consumer price index used to index incomes will be calculated on a cumulative basis from January 2027, which is taken as 100%, and the indexation amount accumulated in December 2026 will not be accrued in January 2027. The same rule is in place for 2026 (Article 41 of the 2026 State Budget Law No. 4695-IX). These are draft provisions, so until the relevant rules are adopted, 2026 payroll should not be changed on the strength of the draft alone.
Before closing the books for December and preparing for January, employers should check:
- the final text of the State Budget Law for 2027 and the related legislative changes;
- the monthly and hourly minimum wage settings;
- the minimum and maximum USC base and the applicable rates;
- the parameters for applying the tax social allowance and the income cap;
- the calculation of top-ups to the minimum wage;
- USC calculations for part-time work, secondary places of work and special categories;
- the enterprise’s average salary for confirming critically important status;
- the pay of employees you plan to reserve;
- the indexation rules once the final changes take effect;
- documentation of the decisions taken and the results of the checks.
In financial planning, it is worth budgeting for a possible increase in pay and USC costs and assessing whether the new figures will affect compliance with the reservation criteria.
UHY Prostir supports clients with payroll, HR records and reporting. To get your payroll ready for the new year and review your accounting settings once the budget is adopted, talk to our team.