New rules on reserving employees subject to military service have come into force in Ukraine, imposing stricter requirements on businesses. From now on, companies must ensure a salary of at least 26,000 hryvnias.
- The Cabinet of Ministers has approved new rules on the deferment of military service for those liable for military service.
- Companies must increase salaries to 26,000 hryvnias.
- Hundreds of thousands of men could lose their bookings due to the new requirements.
- Strict filters have been introduced for critical businesses.
- Businesses operating near the front line and the public sector are subject to exceptions.
New requirements for businesses
In accordance with the resolution of the Cabinet of Ministers of Ukraine No. 692, businesses seeking to be designated as «critical», are required to increase their employees’ wages to 26,000 hryvnias. This new rule is the result of the government’s efforts to prevent abuse of the booking system.
From now on, if companies are unable to bring their financial performance up to the new standard, hundreds of thousands of men could lose their current booking from mobilisation. This is causing concern amongst business representatives, as the new requirements could have a significant impact on their operations.
Key changes to the booking system
The government has introduced several new strict criteria. Firstly, the salary threshold has been raised: previously, to qualify for critical status, the average salary at a company had to be at least 2.5 times the minimum wage; this ratio has now risen to 3.0. This means that both the average salary across the company and the salary of a specific reserved employee must meet the new requirements.
Secondly, all previously issued Decisions on the critical status of enterprises remain in force until 1 September 2026 at the latest. By this date, companies must undergo a full audit and re-confirm their status in accordance with the new criteria. For organisations whose criticality status expires as early as July, the new rules come into effect immediately.
Who is eligible for benefits?
The government has made a number of exceptions. For businesses operating in areas of active hostilities or in temporarily occupied territories, the threshold remains at 2.5 times the minimum wage. State-owned and municipal enterprises, as well as cultural and social institutions, also continue to retain staff under the old procedures.
Experts point out that the new requirements could pose a serious financial challenge for small and medium-sized businesses, forcing them either to withdraw from the booking system or to cut staff numbers.
