Ukraine increases minimum wage and pensions amid economic challenges
2:22 PM EDT, March 30, 2024
Ukraine is set to raise its minimum wage. Starting April 1, it will increase to 8,000 hryvnias, approximately $217. Additionally, pension benefits will see a boost.
"From April 1, the minimum wage will go up from the current 7,100 hryvnias to 8,000 hryvnias," announced Prime Minister Denys Shmyhal, as reported by the Ukrinform agency, following a government meeting.
The Prime Minister also mentioned that pensions would be raised to 5,700 hryvnias (about $155).
- "In March alone, pensions totaling 62 billion hryvnias were distributed. This increase fulfills the promise we made," added the Prime Minister.
Meanwhile, in Poland, since January 1, the minimum wage has been set at 4,242 PLN gross, which is slated to rise to 4,300 PLN gross from July 1. The minimum hourly rate for contracts under civil law started at 27.70 PLN gross, moving up to 28.10 PLN gross from July 1.
The economic highs and lows of Ukraine
As previously reported on money.pl, the war has significantly impacted the Ukrainian economy. In 2022, Ukraine's GDP plummeted by 29.1% according to the Ukrainian Ministry of Economy's estimates, and even more so, by 35%, according to the International Monetary Fund, as the country adapted to wartime economic conditions.
Dominik Kopecki from the World Economy team at the Polish Economic Institute highlighted that "Ukraine has been shouldering the costs of aggression since 2014, when Russia initiated the occupation and subsequent annexation of Crimea, along with parts of the eastern Ukrainian territory." - The total economic losses incurred by Ukraine from 2014 to 2022, due to diminished economic potential, are estimated at nearly 740 billion dollars, the expert noted.
According to worldometers.info, Ukraine ranked 58th globally in nominal GDP for 2022, positioned between Hungary and ahead of Morocco and Ethiopia. Poland stood at 21st, surpassing Argentina and Sweden.
However, there's a silver lining for Kyiv in 2023, as reported by Bloomberg. The fourth quarter marked the third consecutive quarter of GDP growth for Ukraine. Over the entire year, Ukraine’s GDP witnessed a 5.3% increase.
