Mayor of Kharkiv and Chair of the Association of Frontline Towns and Communities Ihor Terekhov called for a review of the minimum subsistence level in Ukraine, stating that the current figure no longer reflects the real cost of living. In 2026, the official minimum subsistence level per person is 3,209 UAH per month, whilst for those of working age the figure is 3,328 UAH. These figures are laid down in the law on the state budget for the current year.
- Terekhov proposes revising the minimum cost of living.
- In 2026, the total figure is 3,209 UAH.
- There are proposals to raise the minimum wage to 10,000 UAH.
- The minimum pension — at least 6,000 UAH.
- There is also a proposal to reduce VAT on basic foodstuffs to 5%.
«The cost of living has become detached from reality»
Terekhov presented a package of proposals during a round-table discussion on combating poverty, which took place on 4 September in Kyiv and was attended by MPs, experts, representatives of international organisations and civil society.
According to him, even the most basic basket of groceries now costs considerably more than the official subsistence minimum.
«The cost of living has really become out of touch with reality these days.».
Terekhov emphasised that social policy should not only help people who have already fallen below the poverty line, but also prevent the situation of working families, pensioners and internally displaced persons from deteriorating further.
The minimum wage is 10,000, and the pension is 6,000
The Association of Frontline Towns and Communities proposes, during the preparation of the 2027 national budget set the minimum wage at a level of at least 10 000 UAH, and the minimum pension must be no less than 6,000 UAH.
These are, for the time being, merely proposals from the APMG — the relevant figures have not yet been approved in the 2027 Budget Act.
Another initiative concerns taxation. Terekhov proposes to introduce 5% VAT on basic foodstuffs, and to reduce the rate for medicines and medical devices from the current 7% to 5% as well. A temporary VAT rate of 7% is proposed for equipment used for autonomous and backup power supplies in households.
Where can you find money?
Terekhov acknowledges that the state budget’s resources are limited during the war, and that defence spending cannot be cut.
He suggests looking for additional resources via bringing the economy out of the shadows, improving revenue administration, reviewing ineffective government programmes and reducing excessive administrative costs.
Separately, during the round-table discussion, participants discussed the expansion of the «Affordable Medicines» programme and support IDPS and the possibility of reimbursing patients for the cost of medicines which hospitals should have provided free of charge but did not, in fact, supply.
The final decision rests with the government and the Rada
The Association’s proposals do not imply an automatic increase in social standards. In order to change the cost of living allowance, the minimum wage and other budgetary indicators, the relevant provisions must be included by the government in the draft state budget and approved by the Verkhovna Rada.
Some of the initiatives to reduce VAT on socially important goods are already being prepared for submission to parliament. The APMG also plans to continue working on the amendments in collaboration with MPs, the government and experts.
