Many Ukrainians know that, despite the name, it is practically impossible to live on the “subsistence minimum,” because it is less than the minimum wage.
VIDEO OF THE DAY
Therefore, it is planned that the “subsistence minimum” will be changed in the future to a level of about 10-12 thousand hryvnias, said Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, in an interview with RBC-Ukraine.
According to him, the new rules will tie minimum wages and pensions to the subsistence minimum, and the increase will be gradual and depend on budget resources and the de-shadowing of the economy.
“I am convinced that this needs to be done right now. A law has already been submitted on decoupling the subsistence minimum from salaries for judges, prosecutors, etc. In total, there are four laws in the package. They are already in the hall and being voted on,” said Hetmantsev.
ADVERTISING
According to him, decoupling the subsistence minimum from the salaries of civil servants will reduce pressure on the budget and make the system more transparent. In addition, the approach to determining the minimum amount for living is changing.
“We must tell people – this is the amount on which you can really live. And it's not two thousand hryvnias or even eight thousand. In general, the consumer basket needs to be modernized. In Ukraine, you can live on 10-12 thousand hryvnias,” the People's Deputy explained.
The subsistence minimum will now be directly related to the minimum wage and pension, adjusted for work capacity and disability. This means that:
ADVERTISING
- the minimum wage and the tax-free minimum must ensure real survival;
- the minimum pension and disability pensions are increased on a schedule that the budget can allow;
- Increasing social standards is associated with the decentralization of the economy, for example, from the tobacco industry.
“If the minimum pension is immediately increased to 4.5 thousand hryvnias instead of 2.3 thousand, the resources for this will appear thanks to de-shadowing and effective tax administration,” Hetmantsev emphasized.
According to him, raising the subsistence minimum stimulates the economy. People with greater purchasing power direct funds into domestic consumption, supporting businesses and jobs, which has a much greater effect than government cashback programs.
What will be changed:
- the salaries of judges, prosecutors, and other civil servants will be decoupled from the subsistence minimum;
- the real subsistence minimum will be set at 10-12 thousand hryvnias;
- the minimum pension and the non-taxable minimum will be tied to the subsistence minimum;
- Social benefits will gradually increase due to de-shadowing.
Let us recall that the increase in the minimum pension from 2,361 to 2,564 hryvnias is considered insufficient by the People's Deputy of Ukraine Danylo Hetmantsev. In his opinion, the size of the “minimum” should be 4-4.5 thousand hryvnias, and he intends to seek its increase in the state budget for 2026.
ADVERTISING
