Minimum wage and taxes — changes in December 2024

Ukraine increased the minimum wage by UAH 900 ($22.59) since April 1, 2024. Now it is UAH 8,000 ($191.88), but this is the amount excluding taxes.

The Novyny.LIVE website unveils what will the tax be, taking into account the minimum wage in December.

What taxes are deducted from the salaries of Ukrainians

At the beginning of the year, the minimum wage was UAH 7,100. Now not only the salary has increased, but also the amount of taxes from it. Currently, two types of taxes are deducted from the salaries of Ukrainians:

•    personal income tax;
•    military levy.

What is the amount of taxes in 2024

The amount of these taxes is currently as follows:

•    personal income tax — 18% of a person's salary;
•    military levy — increased to 5% (before the increase, tax was 1.5%).

It is worth noting that the law will be applied retroactively, so the military levy has been increased from the salary for October.

If previously the tax rate for citizens was 19.5%, then after the increase in the military levy this number increased to 23%.

Thus, if the minimum wage is 8,000 UAH ($191.88), then the tax reaches 1,840 UAH ($44,13). Therefore, taking into account taxes, the minimum wage is 6,160 UAH ($147,75).

Let us recall that the resentment associated with the publication of the new law on increasing taxes for citizens of Ukraine has ended. As expected, it came into force on December 1, 2024, and not November 29. Thus, accountants will not have to worry about calculating the military levy from the salary for two days during the month.

We also wrote that the President Volodymyr Zelenskyy signed a law on amendments to the Tax Code of Ukraine regarding the features of taxation during the period of martial law. This was the largest tax increase ever.