The Cabinet of Ministers of Ukraine submitted the Draft State Budget for 2027 to the Verkhovna Rada on 16 September 2026, establishing the minimum monthly wage at UAH 8,500 and the subsistence minimum for able-bodied persons at UAH 3,200, effective 1 January 2027. These figures represent a 13.3% and 10.3% increase respectively over 2026 levels. The parameters directly impact Personal Income Tax (PIT) calculations, Unified Social Contribution (USC) bases, and the unified tax for FOPs on the simplified system. The draft also maintains the military levy at 1.5% of taxable income.
Key Takeaways
- USC Base Adjustment: The minimum USC base for employers rises to UAH 8,500 per employee monthly, increasing annual labor costs by approximately UAH 12,240 per minimum-wage worker.
- FOP Unified Tax Impact: FOPs on Group II (fixed tax) will see their monthly tax liability recalculated based on the new minimum wage, effective from the January 2027 reporting period.
- Budget Adoption Timeline: The Parliament is expected to adopt the budget in first reading by 15 October 2026, with final vote by 30 November 2026; businesses should model 2027 payroll scenarios now.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement