Minimum Wage 2027: Subsistence Minimum, Social Contribution, Taxes and Sole Proprietor Thresholds

The figures have not yet been enacted: Bill No. 16000 was registered with the Verkhovna Rada on 15 September 2026 and the amounts may still change. The minimum wage, the subsistence minimum and the grade 1 salary under the Unified Tariff Scale are taken from the text of the draft State Budget for 2027. The single tax rates for groups 1 and 2 are the maximum permitted under clause 293.2 of the Tax Code; the actual rate is set by the local council. The maximum Unified Social Contribution base of 20 times the minimum wage and the amounts derived from it are not fixed in Law No. 2464-VI, which provides for 15 times the minimum wage: they are introduced each year by a separate article of the State Budget Act. Without such an article in the final text of the 2027 Budget these amounts do not apply.

The essentials in 30 seconds

• From 1 January 2027 the minimum wage is UAH 9,546 per month and UAH 57.50 per hour; no mid-year increase is provided for.
• Net pay from the minimum wage, without tax social relief, is UAH 7,350.42 (18% personal income tax + 5% military levy).
• The subsistence minimum is UAH 3,559 per person; for persons of working age, UAH 3,691.
• The minimum social contribution is UAH 2,100.12 per month; the maximum base of UAH 190,920 applies only if the 2027 Budget repeats the 20-times structure.
• The basic tax social relief is UAH 1,845.50, with a monthly income ceiling of UAH 5,170.
• Annual income thresholds for sole proprietors: group 1 — UAH 1,594,182, group 2 — UAH 7,961,364, group 3 — UAH 11,140,182.
• The military levy for sole proprietors in groups 1, 2 and 4 is UAH 954.60 per month; group 3 pays 1% of income.
• Labour penalties: up to UAH 286,380 per employee for a repeat breach of employment documentation rules.

1. Draft standards in labour remuneration

1.1. Minimum wage

From 1 January 2027 for the whole year; no mid-year increase is provided for:

Indicator	Amount
Monthly rate	UAH 9,546
Hourly rate	UAH 57.50

For comparison, the minimum wage in 2026 was UAH 8,647, an increase of UAH 899 or 10.4 per cent.

Net pay calculated from the minimum wage, without tax social relief. The withholding rates are those currently in force: personal income tax at 18 per cent and the military levy at 5 per cent.

Indicator	Formula or rate	Amount, UAH
Gross pay (minimum wage)	—	9,546.00
Personal income tax	9,546 × 18%	1,718.28
Military levy	9,546 × 5%	477.30
Net pay	9,546 − 1,718.28 − 477.30	7,350.42

Where an employee is entitled to tax social relief the net amount will be higher; see section 4. For an employee without children earning only the minimum wage, ordinary tax social relief will as a rule not apply, because the income ceiling of UAH 5,170 is lower than the minimum wage.

1.2. Grade 1 salary under the Unified Tariff Scale

Indicator	Amount
From 1 January 2027	UAH 3,819

2. Subsistence minimum in 2027

Category	Amount, UAH
Per person per month	3,559
Children under 6	3,124
Children aged 6 to 18	3,895
Persons of working age	3,691
Persons who have lost working capacity	2,878

Separate, frozen subsistence minimum:

Purpose	Amount
Determining the salary of a district prosecutor, the salaries of staff of other state bodies governed by special legislation, and of the tax and customs authorities	UAH 2,331

3. Unified Social Contribution

3.1. Contribution on employees' wages

Indicator	Formula	Amount, UAH
Minimum insurance contribution (22%)	9,546 × 22%	2,100.12
Maximum base if the 2027 Budget retains 20 times the minimum wage	9,546 × 20	190,920.00
Maximum contribution at 22% (on the 20-times basis)	190,920 × 22%	42,002.40
Maximum contribution at 8.41% for persons with disabilities (on the 20-times basis)	190,920 × 8.41%	16,056.37
Base under Law No. 2464-VI (15 times the minimum wage) if the 2027 Budget does not alter it	9,546 × 15	143,190.00
Maximum base for military personnel, police officers and enlisted and command personnel (15 times the minimum wage, a separate regime in 2025 and 2026)	9,546 × 15	143,190.00

Legal basis of the 20-times multiple. Clause 4 of part 1 of Article 1 of Law No. 2464-VI sets the maximum base at 15 times the minimum wage. The multiple of 20 was introduced for 2025 by Article 39 of the State Budget Act for 2025 and for 2026 by Article 32 of the State Budget Act for 2026, with the simultaneous suspension of clause 4 of part 1 of Article 1 of Law No. 2464-VI. For the pay of military personnel, police officers and enlisted and command personnel, the multiple of 15 was retained in 2026. The amounts of UAH 190,920, UAH 42,002.40 and UAH 16,056.37 are indicative only and apply only if the final 2027 Budget repeats that structure.

The minimum contribution calculated on the minimum wage is charged at the principal place of employment in respect of employees without a disability. It does not apply to employees in secondary employment, to persons with disabilities, for whom the rate is 8.41 per cent of the actual base, to periods of unpaid leave, or in the other cases expressly provided for in Law No. 2464-VI.

3.2. Contribution payable by a sole proprietor for themselves

Indicator	Formula	Amount, UAH
Minimum monthly contribution	9,546 × 22%	2,100.12
Minimum quarterly contribution	2,100.12 × 3	6,300.36

A sole proprietor on the simplified system determines the base independently, but it may be no lower than the minimum insurance contribution and no higher than the maximum base. Exemptions from the contribution payable for oneself, available to pensioners, persons with disabilities and others, are set out in part 4 of Article 4 of Law No. 2464-VI and must be verified separately as at the date of payment.

4. Tax social relief

Tax social relief is a personal allowance which reduces the base for personal income tax. The basic amount equals 50 per cent of the subsistence minimum for a person of working age as at 1 January of the reporting tax year:

Indicator	Formula	Amount, UAH
Basic relief as at 1 January 2027	3,691 × 50%	1,845.50
Monthly income ceiling for entitlement	3,691 × 1.4, rounded to UAH 10	5,170

The increased amounts of relief at 150 and 200 per cent, and the multiples of the income ceiling applicable where there are children, are set out in Article 169 of the Tax Code.

5. Single tax, thresholds and the military levy for sole proprietors

5.1. Single tax rates in 2027

Under clause 293.2 of the Tax Code the fixed rates for groups 1 and 2 are set by the village, settlement or city council according to the type of activity. The Code prescribes an upper limit only. The figures below are the maximum monthly amounts published by the State Tax Service for guidance; they are not the rate binding on every sole proprietor.

Group	Rule (clause 293.2 of the Tax Code)	Maximum or rate
Group 1	No more than 10% of the subsistence minimum for persons of working age as at 1 January. The actual rate is set by the local council	No more than UAH 369.10 per month
Group 2	No more than 20% of the minimum wage as at 1 January. The actual rate is set by the local council	No more than UAH 1,909.20 per month
Group 3	Charged on income, not by reference to the minimum wage or subsistence minimum	5% for those not registered for VAT or 3% for those registered for VAT

Where a sole proprietor in group 1 or 2 carries on several types of activity, the highest of the rates set by the council for those activities applies (clause 293.6 of the Tax Code).

5.2. Annual income thresholds

The threshold is fixed by reference to the minimum wage as at 1 January and is not recalculated during the year:

Group	Multiple of the minimum wage	Threshold, UAH
Group 1	167	1,594,182
Group 2	834	7,961,364
Group 3	1,167	11,140,182

Thresholds close together are a reason to check whether the tax authorities might see your business as split in two: one Wi-Fi access point — and you are already "splitting" the business.

5.3. Military levy for sole proprietors on the single tax

Group	Rule	Amount
Groups 1, 2 and 4	10% of the minimum wage as at 1 January	UAH 954.60 per month
Group 3	1% of income	1% of income

5.4. The increased rate of 15 per cent and the VAT threshold

Situation	Provision and consequence
Exceeding the annual income threshold for groups 1 to 3; carrying on activities not permitted for the group; dealing with persons outside the single tax system in prohibited cases	A rate of 15% applies to the excess or to the prohibited income (clause 293.4 of the Tax Code), together with an obligation to move to another group or to the general system
Threshold for mandatory VAT registration	UAH 1,000,000 of taxable transactions over the preceding 12 calendar months (clause 181.1 of the Tax Code). It is not linked to the minimum wage or the subsistence minimum

When you purchase services from a non-resident, the VAT threshold is not the only trigger point: when a non-VAT-registered buyer must charge VAT on a non-resident's services.

6. Indexation of income in 2027

The consumer price index used for indexation is to be calculated cumulatively from January 2027, with January taken as 1 (or 100 per cent). The indexation amount accumulated by December 2026 is not carried into January 2027 — a reset to zero. This rule is to be enacted by the State Budget Act for 2027.

7. Reference amounts for reservation from mobilisation

Reference	Rule	Amount, UAH
Calculated level of three times the minimum wage: the average wage across the enterprise, or the pay of the reserved employee	3 × 9,546	28,638

The applicable criteria for reservation are laid down in a separate Resolution of the Cabinet of Ministers and may differ from three times the minimum wage as at the date of application. How reservation works for remote employees was covered separately: Reserving remote employees in 2026.

8. Temporary incapacity and maternity benefit

The minimum daily average is 9,546 ÷ 30.44 = UAH 313.60. The maximum of UAH 6,272.01 is calculated as (20 × 9,546) ÷ 30.44 and applies only if the 2027 Budget retains the maximum Unified Social Contribution base at 20 times the minimum wage. If the multiple of 15 under Law No. 2464-VI applies, the maximum will be (15 × 9,546) ÷ 30.44 = UAH 4,704.01. The tables give the amount for one day, not for the whole period of incapacity.

A minimum is prescribed only for maternity benefit, which on a monthly basis may not be lower than the minimum wage. No minimum is prescribed for temporary incapacity benefit.

8.1. Temporary incapacity benefit, per day

Insurance record	Minimum, UAH	Maximum, UAH (on the 20-times basis)
Less than 6 months within the 12 months preceding the event	Not prescribed	313.60
6 months or more	Not prescribed	6,272.01

8.2. Maternity benefit, per day

Insurance record	Minimum, UAH	Maximum, UAH (on the 20-times basis)
Less than 6 months within the 12 months preceding the event	313.60	627.20
6 months or more	313.60	6,272.01

9. Other amounts linked to the minimum wage and the subsistence minimum

Indicator	Rule	2027 / 2026, UAH
Domestic per diem allowance, maximum exempt amount	0.1 × minimum wage	954.60 / 864.70
Exempt gifts, per month	25% of the minimum wage	2,386.50 / 2,161.75
Non-targeted charitable assistance, maximum exempt amount	Equal to the income ceiling for tax social relief (sub-clause (b) of sub-clause 170.7.3 of the Tax Code)	5,170 / 4,660

10. Labour penalties under Article 265 of the Labour Code

The base is the minimum wage established by law as at the date the breach is detected, rather than as at 1 January. In 2027, if the minimum wage remains UAH 9,546 throughout the year, the result is the same, but the methodology is as stated. The amounts below are indicative and calculated from the draft minimum wage of UAH 9,546.

Breach	First breach	Repeat breach or other feature
Undocumented employee; part-time engagement where the work is in fact full-time; wages paid without social contributions and taxes	10 × minimum wage = UAH 95,460 for each employee. For legal entities and sole proprietors on the single tax in groups 1 to 3 who employ staff: a warning	Within 2 years, 30 × minimum wage = UAH 286,380 for each employee, under any tax regime
Delay of more than one month in paying wages or other employment payments, or payment in part only	3 × minimum wage = UAH 28,638	—
Failure to observe the minimum state guarantees in labour remuneration	2 × minimum wage = UAH 19,092 for each employee. For single tax payers in groups 1 to 3: a warning	—
Failure to observe the guarantees afforded to mobilised employees, including retention of employment and average earnings	4 × minimum wage = UAH 38,184 for each employee	—
Refusal of access to, or obstruction of, a labour inspection	3 × minimum wage = UAH 28,638	Where the inspection concerns undocumented employees, 16 × minimum wage = UAH 152,736
Other breaches of labour legislation	1 × minimum wage = UAH 9,546 for each breach	Repeat within one year, 2 × minimum wage = UAH 19,092

Reduction of the penalty. Where the person pays 50 per cent of the penalty within 10 banking days of service of the decision, the payment obligation is treated as discharged (part 5 of Article 265 of the Labour Code). During martial law separate restrictions on inspections and sanctions may apply, and the version in force as at the date of the event should be checked.

Labour penalties under Article 265 often follow tax inspections, so keep their time limits in mind: the 1,095-day tax limitation period: what can be inspected in 2027.

11. Summary of formulas

Item	Formula and caveat for 2027
Maximum single tax, group 1	No more than subsistence minimum for persons of working age × 10% = UAH 369.10; the rate is set by the council
Maximum single tax, group 2	No more than minimum wage × 20% = UAH 1,909.20; the rate is set by the council
Military levy, sole proprietors in groups 1, 2 and 4	Minimum wage × 10% = UAH 954.60
Income threshold, groups 1, 2 and 3	Minimum wage × 167 / 834 / 1,167
Increased single tax rate	15%, clause 293.4 of the Tax Code, on exceeding the threshold and in similar cases
VAT threshold	UAH 1,000,000 over 12 months (clause 181.1 of the Tax Code)
Minimum social contribution, employee and sole proprietor for themselves	Minimum wage × 22% = UAH 2,100.12
Maximum social contribution base	20 × minimum wage, only if so provided in the 2027 Budget; otherwise 15 × minimum wage under Law No. 2464-VI
Basic tax social relief and income ceiling	Subsistence minimum × 50% = UAH 1,845.50; subsistence minimum × 1.4 ≈ UAH 5,170
Domestic per diem allowance	Minimum wage × 0.1 = UAH 954.60
Gifts and non-targeted charitable assistance	Minimum wage × 25% = UAH 2,386.50; income ceiling for relief = UAH 5,170
Net pay from the minimum wage without relief	Minimum wage × 0.77 = UAH 7,350.42

12. Sources and status

Once the 2027 Budget is enacted, the following must be verified: the articles on the minimum wage, the subsistence minimum, the Unified Tariff Scale salary, indexation, and the separate article on the maximum Unified Social Contribution base (20 or 15 times the minimum wage). Until the Act enters into force the figures should be used only as planning estimates.

A reference guide for accountants' internal use. It does not constitute official guidance of the State Tax Service, the Pension Fund, the State Labour Service or the Ministry of Economy.

Frequently asked questions

Can payroll and costs already be planned on a minimum wage of UAH 9,546?

Yes, as planning estimates: the figures are taken from the text of the draft State Budget for 2027 (Bill No. 16000). But they have not been enacted, so verify the final amounts once the law is signed.

Does the maximum social contribution base increase to UAH 190,920 in 2027?

Not guaranteed. Law No. 2464-VI provides for 15 times the minimum wage (UAH 143,190). In 2025 and 2026 the 20-times ceiling was introduced by a separate article of the State Budget Act; if the 2027 Budget contains no such article, the 15-times base applies.

What is the single tax rate in 2027 for sole proprietors in groups 1 and 2?

The fixed rate is set by the local council according to the type of activity. The Tax Code itself prescribes only the ceilings: no more than UAH 369.10 per month for group 1 and no more than UAH 1,909.20 per month for group 2.

Does tax social relief apply to the minimum wage?

For an employee without children, as a rule no: the monthly income ceiling of UAH 5,170 is lower than the minimum wage of UAH 9,546. Relief applies at the increased amounts (for children or special categories) and subject to the income condition.

When are labour penalties calculated on the new minimum wage?

The base for penalties under Article 265 of the Labour Code is the minimum wage at the date the breach is detected, not as at 1 January. If a breach is detected in 2027, the amounts are calculated on UAH 9,546 — once that minimum wage is enacted.

Read next: The 1,095-day tax limitation period: what the tax authorities can inspect in 2027.

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