The minimum wage in Ukraine is currently about 7,000 hryvnias, which is equivalent to approximately 180 euros at the September 2024 exchange rate. This is significantly less than in many European countries, where minimum wages reach tens and even hundreds of euros.
The publication Korotko Pro analyzed the level of minimum wages in different countries. Why? Because most often Ukrainian refugees in Europe work for the minimum wage.
"Average temperature in the hospital"
For the past year, labor market experts have been talking about the growth of Ukrainian salaries. But earnings still leave much to be desired.
The average salary in Ukraine, according to the results of the second quarter of 2024, was 20,964 UAH, or about 455 euros. For comparison: in Poland, the average salary in August was 8,190 PLN gross (1,916 euros), and, for example, in Switzerland – 8,012 Swiss francs (8,493 euros).
Experts have been saying for years that the average salary means little, as our example shows. It is not without reason that it is often called the “average temperature in the hospital” and the example of cabbage rolls is given (when some eat cabbage, others 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 employees of our hypothetical company in ascending order, we will get the series 20,000, 20,000, 20,000, 20,000, 100,000. In the middle of this series is the median salary – 20 thousand UAH.
Economists unanimously believe that the median salary reflects the real situation much better in conditions of significant differences in earnings. That is why Europe has long since switched to calculating the median salary. But the Ukrainian State Statistics Service, as before, takes the average.
Therefore, it is advisable to compare minimum wages with each other.
Minimum wage in Ukraine
From April 1, 2024, the minimum wage in Ukraine, according to the 2024 budget, 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, an 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.
Let's note right away that not all European countries have minimum wages. For example, the initiative to introduce a minimum wage in Switzerland was categorically rejected by the country's residents ten years ago, but the average salary in Switzerland, as mentioned above, is one of the highest in Europe.
There is no minimum wage in Norway either, but local employers try to find mutually beneficial compromises with trade unions to avoid problems. In 2024, the minimum hourly wage for unskilled work in Norway was 18 euros. That is, with a 40-hour work week, a person in such a job will earn 720 euros, which, based on 176 working hours, is equivalent to 3,168 euros per month.
According to Eurostat, the highest minimum wage in Europe is set in Luxembourg – €2,571. In second and third place are Ireland and the Netherlands with €2,146 and €2,070, respectively.
If we talk about European countries with the largest number of Ukrainian refugees, in Poland the minimum wage is 978 euros, in Germany – 2,054 euros, and in the Czech Republic – 764 euros.
As we can see, the lowest European minimum wage is twice as high as the Ukrainian one. And given that we have to live on this salary for more than one year, we are unlikely to get close to European earnings in the near future.
Recall that the draft budget for 2025 provides for a freeze on social standards. The minimum wage will remain at 8 thousand hryvnias, and the subsistence minimum will be 2920 hryvnias, which also remains unchanged compared to 2024. For civil servants, this figure will be 2102 hryvnias. Thus, social payments will remain at the current level, which may cause dissatisfaction among the population.
