As of January 1, 2024, the minimum cost of living has increased in Ukraine, serving as the baseline for various social guarantees. Approximately 150 different types of payments are tied to the minimum cost of living.
According to the law on the state budget, in 2024, the minimum cost of living will rise from 2589 hryvnias to 2920 hryvnias, which is a 12.8% increase, considering the expected inflation rate of 9.7%.
The law establishes the minimum cost of living per month for different social and demographic groups:
- For individuals - 2920 hryvnias
- Children under 6 years old - 2563 hryvnias
- Children aged 6 to 18 - 3196 hryvnias
- Working-age individuals - 3028 hryvnias
- Working-age individuals used to determine the basic salary of a judge - 2102 hryvnias
- Working-age individuals used to determine the salaries of employees of other state bodies, whose salaries are regulated by special laws, as well as employees of tax and customs authorities - 2102 hryvnias
- Working-age individuals used to determine the salary of a prosecutor of the regional prosecutor's office - 1600 hryvnias
- Individuals who have lost their ability to work (minimum pension) - 2361 hryvnias
The minimum cost of living for non-working individuals affects the size of the pension, essentially constituting the minimum pension. However, the recalculation of pensions, allowances, increases, and other pension supplements, considering the minimum cost of living for non-working individuals set on January 1, 2024, will be conducted from March 1, 2024, along with the annual pension indexation.
The size of the minimum cost of living for working-age individuals primarily affects the salaries of employees of state bodies. The minimum amount of their official salary cannot be less than two times the minimum cost of living.
Additionally, it influences the amount of unemployment benefits. The maximum amount is set at four times the minimum cost of living. Thus, it will increase from 10,356 hryvnias to 11,680 hryvnias.
The minimum cost of living for children affects social assistance and the amount of child support. Specifically, child support cannot be less than 50% of the minimum cost of living for a child of a certain age. The recommended amount of child support equals the minimum cost of living.
The official size of the minimum cost of living has long diverged from its actual value. According to information from the Ministry of Social Policy, the actual size of the minimum cost of living for working-age individuals, as of June 2022, was estimated at 7,000 hryvnias and was projected to be 8,200 hryvnias at the beginning of 2023 (and accordingly, 8,600 hryvnias at the beginning of 2024).
