How will the subsistence minimum, minimum wage, and exchange rate change: The Cabinet of Ministers approved the budget declaration

The Cabinet of Ministers has approved the budget declaration for 2026-2028, which defines the subsistence minimum, minimum wage, and exchange rate for the next three years, writes UNN.

Subsistence MinimumAccording to the budget declaration, in 2026-2028, the projected sizes of the living wage are calculated based on the main macroeconomic indicators of Ukraine’s economic and social development, including an increase in the consumer price index for the respective year. 

It is expected that in 2026 the subsistence minimum will be at the level of: 

• per person – 3,171 hryvnias;
• for children under six years of age – 2,783 hryvnias;
• for children aged six to 18 years – 3,471 hryvnias;
• for able-bodied persons – 3,288 hryvnias;
• for persons who have lost their ability to work – 2,564 hryvnias. 

In 2027, the subsistence minimum will be at the level of:

• per person – 3,358 hryvnias;
• for children under six years of age – 2,947 hryvnias;
• for children aged six to 18 years – 3,676 hryvnias;
• for able-bodied persons – 3,382 hryvnias;
• for persons who have lost their ability to work – 2,715 hryvnias.

In 2028, the subsistence minimum will be at the level of:

• per person – 3,536 hryvnias;
• for children under six years of age – 3,103 hryvnias;
• for children aged six to 18 years – 3,871 hryvnias;
• for able-bodied persons – 3,667 hryvnias;
• for persons who have lost their ability to work – 2,859 hryvnias.

As noted Yaroslav Zhelezniak, First Deputy Head of the Committee on Finance, Tax and Customs Policy, the subsistence minimum will not increase significantly. 

In fact, every year the government only sees +/- 200 hryvnias

In 2025, the subsistence minimum and the social payments tied to it remain at the level of 2024 and will amount to 2920 hryvnias per month.

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Minimum WageAccording to the budget declaration, the minimum wage is planned to be set at: 

• from January 1, 2026, in the amount of 8,688 hryvnias;
• from January 1, 2027, in the amount of 9,374 hryvnias;
• from January 1, 2028, in the amount of 10,059 hryvnias.

The official salary of an employee of the 1st tariff category of the unified tariff grid is planned to be set at:

• from January 1, 2026, in the amount of 3,470 hryvnias;
• from January 1, 2027, in the amount of 3,744 hryvnias;
• from January 1, 2028, in the amount of 4,018 hryvnias.

The amount of the subsistence minimum for able-bodied persons, which is used to determine the basic amount of the judge’s official salary, the official salaries of employees of other state bodies whose remuneration is regulated by special laws, as well as employees of tax and customs authorities, remains at the 2025 level

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Exchange RateAccording to the forecast of the Ministry of Economy, the average dollar exchange rate will be:

• in 2026 – 44.7 hryvnias (44.8 hryvnias – for December);
• in 2027 – 45.2 hryvnias (45.3 hryvnias – for December);
• in 2028 – 45.6 hryvnias (45.8 hryvnias – for December).

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State Budget DeficitThe declaration states that in the medium term, a gradual reduction in external financial support for Ukraine and, accordingly, in the state budget deficit is expected.

Thus, the state budget deficit is projected at 9.9% of gross domestic product in 2026, 5.2% of gross domestic product in 2027, and 3.8% of gross domestic product in 2028.

In absolute terms, this means that the deficit will decrease from 1.64 trillion hryvnias this year to 1.03 trillion hryvnias next year. In 2027, it will amount to 0.62 trillion hryvnias, and by 2028, it will drop to 0.51 trillion hryvnias.

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InflationBy the end of 2025, inflation is expected to slow down to 9.5%. At the same time, price dynamics throughout 2025 will be influenced by diverse factors. On the one hand, a moratorium on increasing some tariffs, restrained demand, saturation of the market with commodity supply, and relative stability in the foreign currency market will influence the slowdown of inflation. On the other hand, potential risks will remain in the form of increased production costs and logistical obstacles, which will lead to the transfer of additional costs to prices for the final consumer – the document states.

The document also indicates that further economic development of Ukraine will largely depend on the duration and course of the active phase of military operations, the volume of financial assistance from international partners, and the dynamics of migration processes.

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TaxesThe declaration indicates that reducing the state budget deficit will require a package of measures for stable and continuous financing of priority needs in the sphere of state security and defense against the armed aggression of the Russian Federation against Ukraine, which will include improving control over income received using digital platforms, work on collecting tax debt, excise tax on beverages with added sugar or other sweeteners or flavorings. 

As Zhelezniak notes, in fact, the government plans to “collect” taxes starting next year from digital platforms (the so-called “OLX tax”), introduce an excise tax on sweet/carbonated drinks, and also improve the system for collecting tax debt. 

According to the Ministry of Finance’s forecasts, this will bring an additional 48.5 billion hryvnias in 2026, and 28 billion hryvnias each in 2027-2028. 

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