The draft State Budget of Ukraine for 2027 proposes setting the minimum wage at 9,546 UAH from 1 January, and the subsistence minimum for able-bodied persons at 3,691 UAH. The Budget Declaration also assumes an average annual exchange rate of 47.1 UAH to the dollar. These figures are yet to be considered by the Verkhovna Rada.
Briefly about the main points
- There is a proposal to increase the minimum wage by 899 UAH.
- A minimum subsistence allowance of 3,691 UAH is provided for people of working age.
- The sum of 3,559 UAH is not a realistic figure for a person of working age.
- The currency benchmark is an annual average, not a fixed exchange rate.
- The draft budget is awaiting parliamentary consideration.
Social standards and pay grade
The proposed minimum wage of 899 UAH, or approximately 10.4%, exceeds the current figure of 8,647 UAH. This target was set out in the Budget Declaration for 2027–2029 even before the final draft was drawn up.
The basic salary for an employee in the first pay grade of the Unified Pay Scale is set to be 3,819 UAH from the start of 2027. A separate subsistence minimum is provided for in the budget estimates for able-bodied persons.
In the materials concerning budget The figure of approximately 3,559 UAH is also mentioned — this is a general guideline for the main social categories. It does not represent the minimum cost of living specifically for a person of working age.
Exchange rate used in budget estimates
The exchange rate figure set out in the declaration is a projected average for the whole of 2027. It is used for budgetary calculations and does not imply that the dollar will trade at this rate every day of the year.
The macroeconomic framework of the declaration is based on a scenario of a significant improvement in the security situation from 2027 onwards. The government has also provided for a scenario of prolonged active hostilities, in which case the parameters may need to be adjusted.
Submission of the document and its consideration in Parliament
According to the budgetary timetable, the government was due to submit the draft by Verkhovna Rada by 15 September. As of 14 September, it was expected to be tabled in parliament on 16 September; on that date, the relevant committee announced that it would consider the bill.
When drawing up the budget, the government identified defence, the state’s financial stability and social expenditure as its priorities. The Budget Declaration for the security and defence sector for 2027 allocates 2.757 trillion hryvnias; however, these expenditure figures may be subject to adjustment following the coordination of Ukraine’s financing strategy with the European Commission.
The budget will take on its final figures for revenue, expenditure and social standards once it has gone through the parliamentary process. MPs may amend the figures set out in the draft.
