20:22 01.09.2023

Draft 2024 state budget proposes increase in minimum wage to UAH 7,100 from Jan 1, UAH 8,000 from July 1 – Ministry of Finance

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Draft 2024 state budget proposes increase in minimum wage to UAH 7,100 from Jan 1, UAH 8,000 from July 1 – Ministry of Finance

The minimum wage in Ukraine from January 1, 2024 can be increased to UAH 7,100, and from July 1 to UAH 8,000 per month from the current UAH 6,700 per month, First Deputy Finance Minister Denys Uliutin said at an online meeting with Ukrainian associations of local governments and finance departments of regional state administrations and the Kyiv City Council to discuss the main indicators of the state budget.

As the Ministry of Finance reported on the website on Friday, during the budget forecasting, it is also planned an increase from January 1, 2024 to UAH 3,195 per month, of the forecast official salary of an employee of the first tariff category of the Unified Pay Scale, frozen from December 1, 2021 at the level of UAH 2,893.

And at the end of May this year, the Ministry of Economy proposed to increase the minimum wage from 2024 by 14.2% to UAH 7,651, and the salary of an employee of the first tariff category to UAH 3,443.

"In 2024, to support local governments, almost UAH 24 billion of additional subsidies from the state budget to local budgets for the most affected front-line territories will continue to be provided. The basic subsidy from the state budget to local budgets for the next year is projected in the amount of UAH 20.2 billion," Uliutin also said.

In addition, Deputy Finance Minister Roman Yermolychev indicated that from January 1, 2024, remuneration of civil servants will be based on the classification of civil service positions and the grading system. According to him, this will allow introducing transparent conditions for remuneration in the system of public authorities.

Regarding the educational subvention, he said that now the resource for it, taking into account the increase in social standards, is taken into account, but without distribution by territory, since the figures from the Ministry of Education are expected after September 5.

"Expenses in the healthcare sector will be reimbursed from the state budget, and the subvention in support of individual medical institutions will be maintained for the next year. As for the social sphere, it should be noted that we are currently working on a mechanism to determine a unified model for co-financing social services in a state of martial law and laying a resource for the social project Veteran's Assistant," Yermolychev added.

It is indicated that during the discussion, the issues of balances of funds to the accounts of local budgets, the distribution of personal income tax from the military, the features of horizontal alignment of the tax capacity of local budgets, as well as the main approaches and problems of the distribution of interbudgetary transfers under martial law were also discussed.

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