Thu. May 23rd, 2024

Ukrainians will receive a salary increase: when and how will indexation be carried out in 2024

Natasha Kumar By Natasha Kumar Apr6,2024

Salaries will be raised for Ukrainians: when and how indexation will be carried out in 2024

Illustrative photo/unsplash

Ukraine returned the obligation to index wages every year. In 2023, this rule was suspended, but it was reinstated in 2024.

However, Ukrainians do not have to count on a sharp increase in salaries – earnings are subject to mandatory indexation only within the subsistence minimum. This is stated in the research of the publication “Fakty”.

According to Resolution No. 1078, adopted on 17.07.23, all enterprises, institutions and organizations are obliged to index wages, regardless of the form of ownership. Failure to comply with this requirement can lead to financial and administrative fines.

What does salary indexation in 2024 provide:

Indexation of the wages of employees zobov’ all institutions, regardless of the form of ownership, that use the labor of hired workers are required to conduct. If the employer does not index employees' salaries in a timely manner, he may be held liable:

  • financial – a fine in the amount of 10 minimum wages for each employee;
  • administrative – fine from UAH 510 to UAH 1,700, and in case of repeated violation within a year – from UAH 1,700 to UAH 5,100 for:
  • a minor,
  • a pregnant woman,
  • a single father,
  • a father raising a child up to 14 years of age,
  • a father raising a disabled child.

Rules for indexation of wages in 2024:

The Law on the State Budget, adopted in 2023, suspended the Law on Indexation. However, the adopted state budget – 2024 no longer provides for the suspension of this Law. That is, employers will again have to index the wages of their employees. This process is regulated by the procedure for indexation of the population's monetary incomes.

How much will salaries be indexed in 2024:

Indexation is subject to the population's monetary incomes within the subsistence level the minimum In 2024, this indicator is UAH 3,028. You can calculate the salary indexation using a special calculator. For example, if we take January 2017 as the base month, then a salary of UAH 5,000 will be indexed to UAH 5,116.

Wage indexation in 2024 in Ukraine is important an event that will affect the financial situation of citizens. Adequate information and compliance with legal requirements are key to successfully completing this process.

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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