Amid the ongoing military conflict in Ukraine and the economic challenges facing businesses, a new worrying trend has emerged. According to a recent survey, 55% of Ukrainian companies reported that they would not be able to compensate their employees for the increase in military service contributions. This issue raises serious concerns, both from a business perspective and from a social stability perspective in the country.
Thus, if the military levy were to increase to 3% or 5%, slightly more than half, namely 55% of survey participants, indicated that they would not be able to compensate their employees for this difference. Accordingly, this would lead to a decrease in people's real income.
In the event of an increase in military levy to 3%, 15% of companies are ready to fully compensate for the difference during the next salary review, and 14% are ready to partially compensate. The remaining 7% are considering the option of full compensation by introducing a bonus by the end of the year, when martial law will be lifted.
If we are talking about an increase in military duty to 5%, then in this case, slightly fewer companies are ready to fully compensate for the decrease in real income of employees - 14%, and partially - 13%. And 6% are ready to fully compensate with a bonus by the end of the year, when martial law will be lifted. Other companies are considering different approaches to compensation or have not yet made a corresponding decision.
