Hetmantsev proposes raising the minimum wage to 12,000 UAH and introducing new social standards starting from 2026

Danylo Hetmantsev, head of the Parliamentary Committee on Finance, Tax and Customs Policy, has officially proposed increasing Ukraine’s minimum wage to 12,000 UAH in the state budget for 2026. Hetmantsev’s proposals include not only raising the minimum wage, but also setting the subsistence minimum at 4,700 UAH and comprehensively improving social standards and targeted support for specific categories of the population.

Arguments and motivation for the proposal
Hetmantsev highlights that the current minimum wage in Ukraine — 8,000 UAH — has not changed since April 2024, and no revision is planned until the end of 2025. The government’s draft 2026 budget proposes 8,647 UAH, which, in his view, does not meet real social and economic needs. He insists: “the minimum wage should be no less than 12,000 UAH”, while the subsistence minimum should be based on real household expenses rather than “abstract or outdated norms”.

Social standards in budget focus
Beyond raising the minimum, Hetmantsev proposes key changes:
– Subsistence minimum: 4,700 UAH (for working-age persons — 4,794 UAH, for pensioners — 3,786 UAH, for children — special increased rates).
– Increasing social protection spending (+162 billion UAH): raising pensions (+70 billion), more support for low-income families and people with disabilities (+50 billion), developing social services (+6 billion), supporting family-based care and people with disabilities.
– Boosting funding for state support programs for IDPs (+11 billion), including for housing, job placement, medical aid, and evacuation support.

Impact on economy and business
The minimum wage hike would have several effects:
– Growth in the wage fund, strongly affecting the public sector, social sphere and small business.
– Tax revenue growth, as increased wages will boost PIT and social security receipts.
– Employer risks, including possible wage “shadowing”, labor shortages — especially in less automated sectors.
– Rising domestic demand: more money means higher consumption, which boosts the economy.

Parliament and expert discussion
Some MPs support a sharp rise, seeing it as necessary amid inflation and rising costs, while others highlight risks for the budget and employers and call for phased growth. Additional attention is paid to challenges for small business, labor market competition and compensation mechanisms.

Comparison with other initiatives
Alongside Hetmantsev’s proposal, the Social Policy Committee proposes a minimum wage of 11,636 UAH and a subsistence minimum above 10,000. The difference in approach and growth rates is a subject for compromise between the government and business groups.

Forecasts and outlook
Even if implemented gradually, 2026 could see a record increase in social standards amid wartime and postwar economic challenges. Success will depend on real budget capacity, the shadow economy, inflation, and international support for Ukraine.

Conclusion
The proposal to set the minimum wage at 12,000 UAH in 2026 is not only a financial and social move, but a political signal regarding national priorities. The current pace of change creates new opportunities for Ukraine’s development and improved living standards, but also new challenges for business, the budget, and society. The success of this initiative will depend on a balance between social guarantees, budget realities, and economic pragmatism.

Author: Ihor Yasko, Managing Partner of “WINNER” Law Firm, PhD in Law.