Minimum wage in Europe: comparison with Ukraine

The minimum wage in Ukraine is currently about 7,000 hryvnias, which is equivalent to approximately 180 euros at the exchange rate for September 2024. This is much less than in many European countries, where minimum salaries reach tens and even hundreds of euros.

Korotko about analyzed the level of minimum wages in different countries. Why? And because most often Ukrainian refugees in Europe work for the minimum wage.

"Average temperature in the hospital"

For the last year, labor market experts have only been doing what they say about the growth of Ukrainian wages. But at the same time, earnings still want better.

The average salary in Ukraine, according to the results of the second quarter of 2024, was 20,964 hryvnias, or about 455 euros. For comparison: in Poland, the average salary in August was 8,190 zlotys gross (1,916 euros), and, for example, in Switzerland – 8,012 Swiss francs (8,493 euros).

Experts have been saying for many years that the average salary does not say much, as can be seen from our example. It is not for nothing that it is often called the "average temperature in the hospital" and they cite the example of cabbage rolls (when some eat cabbage, others eat meat, and on average everyone eats cabbage rolls).

Much more informative is the median salary - the value that divides the statistical series of salaries into two equal parts. If we arrange the salaries of the employees of our conditional company in ascending order, we will get a row of 20,000, 20,000, 20,000, 20,000, 100,000. In the middle of this row is the median salary - UAH 20,000.

Economists unanimously believe that the median salary is a much better reflection of the real situation in conditions of significant differences in earnings. That is why in Europe they switched to calculating the median salary a long time ago. But the State Statistics Service of Ukraine, as before, takes the average.

Therefore, it is advisable to compare minimum salaries with each other.

Minimum in Ukraine

From April 1, 2024, the minimum wage in Ukraine, according to the budget for 2024, has increased to UAH 8,000. Economists received this news without enthusiasm, explaining that there will be no more money in the pockets of Ukrainians. It's simple: since half of salaries are in the shadows, the increase in the minimum wage leads only to an increase in the official part and, accordingly, to an increase in the tax burden, but at the same time the "envelope part" decreases.

It should be noted right away that not all European countries have minimum wages. For example, the citizens of the country categorically rejected the initiative to introduce a minimum wage in Switzerland ten years ago, but at the same time, the average salary in Switzerland, as already mentioned above, is one of the highest in Europe.

There is no minimum wage in Norway either, but local employers, in order to avoid problems, try to find mutually beneficial compromises with trade unions. In 2024, the minimum hourly wage for unskilled work in Norway was 18 euros. That is, with a 40-hour working week, a person in such a job will earn 720 euros, which, based on 176 working hours, is equivalent to 3168 euros per month.

According to Eurostat, the highest minimum wage in Europe is set in Luxembourg – 2,571 euros. In second and third place are Ireland and the Netherlands with 2,146 euros and 2,070 euros, respectively.

If we talk about the European countries with the largest number of Ukrainian refugees, then in Poland the minimum salary is 978 euros, in Germany - 2054 euros, in the Czech Republic - 764 euros.

As you can see, the lowest European minimum is twice the Ukrainian minimum. And given the fact that we have to live with this salary for many years, we are unlikely to approach European earnings in the near future.

We will remind you that the draft budget for 2025 envisages the freezing of social standards. The minimum wage will remain at the level of 8,000 hryvnias, and the subsistence minimum will be 2,920 hryvnias, which is also unchanged compared to 2024. For civil servants, this figure will be 2,102 hryvnias. Thus, social benefits will remain at the current level, which may cause dissatisfaction among the population.

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