From January 1, 2024, the minimum wage and living wage increased — the law on the state budget-2024 came into force.
Now the minimum salary is 7,100 hryvnias, and the second increase planned for 2024 will take place on April 1 — to 8,000 hryvnias.
The amount of the subsistence minimum has changed as follows:
- UAH 3,023 — for the able-bodied;
- UAH 2,563 for children under the age of six;
- UAH 3,196 — for children from six to eighteen years old;
- UAH 2,361 — for people who have lost their ability to work.
The general indicator of the subsistence minimum increases from UAH 2,589 to UAH 2,920.
What is the effect of raising the minimum
The amount of the Single social contribution (SSC) is calculated as 22% of the minimum wage. If by 2024 the minimum salary was 6,700 hryvnias, then the amount of the social insurance was 1,474 hryvnias. And now the tax will increase to 1,562 hryvnias.
This mostly applies to individual entrepreneurs (IEs), as well as enterprises where employees are paid the minimum wage.
At the same time, IEs are exempt from paying SSC from March 1, 2022 until the end of the war, as well as during the next 12 months. However, this right does not deprive them of the right to voluntarily pay SSC for the purpose of obtaining insurance experience.
In addition, the maximum base for calculation of SSC is 15 minimum salaries. If it was 100,500 hryvnias before January 1, now it will be 106,500 hryvnias.
Also, the increase in the minimum wage is the basis for recalculating the minimum amount of pensions by age for non-working citizens who have reached the age of 65 and older and have insurance experience: men at least 35 years, women at least 30 years. From January 1, the minimum age pension for such pensioners will be 2,840 hryvnias.
For working people, including self-employed people and those registered as self-employed persons, the minimum amount of old-age pensions at the level of 40% of the minimum wage will be established after dismissal.