The Ukrainian government has revealed significant updates to its employee reservation system, aimed at adjusting the criteria for military deferments. These changes, announced by the Ministry of Economy, Environment, and Agriculture, include an increase in the minimum salary threshold required for reservations and a renewed emphasis on the critical nature of businesses.
Under the new regulations, the minimum salary for employees eligible for reservation will rise from 2.5 to 3 minimum wages, now totaling 25,941 UAH. However, this adjustment will not apply to frontline regions. Additionally, employees working multiple jobs can now only be reserved based on their primary employment, a shift designed to ensure a fairer system, according to Minister Oleksiy Sobolev.
“Currently, individuals with deferments are counted toward the military quota at all companies where they work. We are changing the rules so that they will only be counted at their primary workplace,” Sobolev explained.
Employers will have two months to meet the new salary requirements, while adjustments related to multiple job holdings must be completed within ten days. These timelines will commence once the government officially adopts the relevant resolution, which had not yet been finalized at the time of reporting.
Furthermore, Sobolev indicated that the government would reassess the criteria for determining which businesses are deemed critical. There is currently no standardized list, as regional administrations and ministries establish these criteria based on local conditions. This reevaluation aims to prevent misuse and inconsistencies.
“We are conducting an audit to ensure that the criteria pertain to companies that are vital for the economy,” Sobolev stated.
The review of criticality criteria is not the first since the onset of the full-scale invasion. Representatives from the European Business Association (EBA) noted that the speed of this review often depended on the specific region in which a company sought critical status.
“The process of obtaining confirmation was frequently accompanied by significant delays, as the administrative capacity to handle requests did not match the volume of inquiries. This created uncertainty for employees and negatively impacted operational stability,” the EBA remarked.
Concerns about the increased minimum salary have been less pronounced among business representatives. The adjustment from nearly 22,000 UAH to 26,000 UAH could pose challenges, particularly for sectors like agriculture that rely heavily on seasonal employment.
“Unexpected changes like this could encourage a rise in informal employment,” the EBA cautioned.
In contrast, the removal of reservations for employees holding multiple jobs has been met with understanding from business associations.
Currently, there are over 1.3 million individuals in Ukraine with military reservations. However, the Ministry does not anticipate a drastic reduction in this number following the new changes. Estimates suggest that the total could fluctuate between 1.1 and 1.3 million.
While the Ministry of Economy has not conducted specific calculations on how many individuals might lose their deferments, the Ukrainian Entrepreneurs’ Union has projected that between 5% and 15% of employees in member companies could be affected.
The Ukrainian government is implementing key changes to its employee reservation system, raising the minimum salary threshold and refining criteria for business criticality. While the overall number of reserved employees is expected to remain stable, some businesses may face challenges adapting to these new regulations.