Minimum wage in 2026
From January 1, 2026, new social standards are in effect in Ukraine. The minimum wage (MW) has increased to UAH 8,647, which automatically changed taxes for sole proprietors (FOPs), income limits, and penalty amounts.
We have prepared a convenient guide so you can plan your budget and avoid unnecessary questions from regulatory authorities.
Regulatory Framework: What Has Officially Changed?
All calculations for this year are based on the State Budget Law 2026 (No. 4695-IX). The document confirmed the Ministry of Finance forecasts and fixed the new figures that are mandatory for every business in Ukraine from January 1.
Official minimum wage figures from 01.01.2026:
If you use hourly pay (for example, for technical staff or freelancers), make sure that the hourly rate in your internal orders is not lower than UAH 52.
Payroll Calculation for Employees in 2026
From January 1, 2026, the following rule applies: if an employee has completed the monthly workload, their salary cannot be lower than UAH 8,647.
Important: If the salary specified in the staffing schedule is below this threshold, you are required to начислити a top-up to the minimum wage level.
For “part-time work”: If an employee works part-time, payment is made proportionally to the hours worked (for example, for a 0.5 position, the minimum is UAH 4,323.50).
How much will the employee receive “net”?
Thus, the employee’s take-home pay amounts to: UAH 8,647 – UAH 1,556.46 – UAH 432.35 = UAH 6,658.19
In addition to the salary itself, the employer is required to accrue and pay the Unified Social Contribution (USC) at 22% at their own expense: UAH 1,902.34
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Unified Social Contribution (USC)
From January 1, 2026, USC amounts have changed in line with the new minimum wage. We remind you that the contribution base has its limits: from the minimum wage up to 20 times its amount.
Minimum and maximum USC from 01.01.2026
| Indicator | Amount, UAH |
|---|---|
| Minimum insurance contribution | 1 902,34 |
| Maximum contribution base | 172 940,00 |
| Maximum USC (rate 22%) | 38 046,80 |
| Maximum USC (rate 8.41%) | 14 544,25 |
Important: The “minimum insurance contribution” rule applies only to employees at their primary place of employment. If an employee works as a secondary (part-time) employee, USC is calculated on the actual salary.
For persons with disabilities, a preferential rate of 8.41% applies, and the requirement to top up to the minimum contribution does not apply to them.
Labor Fines: The Cost of a Mistake Is Rising
Penalties for violations of labor legislation are directly tied to the minimum wage in effect at the time of inspection. Since from January 1, 2026 the minimum wage is UAH 8,647, the “price list” from the State Labor Service has become more substantial.
| Type of violation | Fine amount, UAH |
|---|---|
| Unregistered employees or payment of wages without USC accrual | 86 470 UAH (per employee) |
| Violation of salary payment deadlines | 25 941 UAH |
| Failure to comply with minimum state guarantees (night work, overtime, etc.) | 17 294 UAH (per employee) |
| Violation of other labor legislation requirements | 8 647 UAH per violation |
Please note: For single tax payers of groups 1–3, a warning may be applied for the first violation regarding unregistered employees, but this is not a reason to take risks. A repeated violation within two years will already cost 30 minimum wages per employee (UAH 259,410).
In 2026, the state once again applied the “reset” indexation mechanism, similar to the one in effect last year. This is stipulated in Art. 41 of the State Budget Law 2026.
There is no need to urgently increase salaries in January just to “escape” indexation for 2025 – the law has already done this for you. The first grounds for calculating new indexation may arise no earlier than April 2026 (and only if inflation is high in February).
Income Limits and Single Tax Rates in 2026
Your status as a single tax payer directly depends on your annual turnover, which is tied to the minimum wage. Since the minimum wage has increased to UAH 8,647, the limits have automatically increased.
If you exceed the limit even by UAH 1, you are required to switch to the general taxation system or a higher group and pay a 15% tax on the excess amount.
Military Levy for Sole Proprietors (FOPs) in 2026
Conclusion
The new budget year has brought an increase in key indicators. Briefly about the main points:
- The minimum wage is UAH 8,647. This is the basis for calculating all your main tax and personnel expenses.
- Along with the increase in the minimum wage, the USC (UAH 1,902.34) has also increased, as well as the military levy for simplified tax payers. It is now a permanent part of your tax calendar.
- Along with salaries, income limits for sole proprietors have also increased. This allows your business to scale while remaining on the simplified taxation system.
- Remember that State Labor Service fines are now also higher. One unregistered employee will “cost” the company’s budget more than UAH 86,000.
2026 requires entrepreneurs to pay even more attention to figures and HR records. If you do not want to track all changes, fines, and limits on your own, accounting support allows you to focus on your business.
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