State Budget 2025 Has Been Adopted, Reservation of Employees in the Private Sector

State Budget 2025 Has Been Adopted

On 19 November 2024, the Verkhovna Rada adopted the Law of Ukraine “On the State Budget of Ukraine for 2025”.

This Law defines a number of macroeconomic indicators as follows:

  • general fund revenues are planned at UAH 2 trillion 133 billion (UAH 383 billion more than in 2024);
  • general fund expenditures are planned at UAH 3 trillion 592 billion (UAH 282 billion more than in 2024);
  • the maximum deficit amount is estimated at UAH 1 trillion 641 billion (205 billion less than in 2024), which will amount to 19.4% of GDP;
  • GDP is forecast to grow by 2.7%;
  • consumer inflation rate is expected to increase to 9.5% (from 7.9% in 2024);
  • the average exchange rate of the UAH is estimated at 45 UAH per 1 US dollar.

The Law is now awaiting the signature of the Chairman of the Verkhovna Rada and the President of Ukraine.

Cabinet Of Ministers Amends The Criteria For Reserving Employees And Obtaining Critical Enterprise Status

On 15 November 2024, the press service of the Cabinet of Ministers informed, that the Government decided to amend Cabinet of Ministers Resolution dated 27 January 2023 No. 76 “Some Issues of Implementation of the Provisions of the Law of Ukraine “On Mobilization Preparation and Mobilization” on the Reservation of Persons Liable for Military Service for the Period of Mobilization and Wartime”.

Main changes:

  • Regional and sectoral criteria for criticality will now be coordinated with the Ministry of Defense and the Ministry of Economy.
  • The salary criteria and the absence of debts to the budget will become mandatory for reservation of employees in the private sector. Thus, the average salary of the company and the reserved employee must be at least 2.5 minimum wages.
  • Starting from 01 December 2024, the reservation process will be carried out exclusively through Diia. Companies will be monitored for compliance with the criteria on a monthly basis.
  • For companies that already have reserved employees, there is a transition period until 28 February 2025. By this time, all companies will have to update their reservations in accordance with the new rules.
  • The amendments will enter into force on 01 December 2024.

However, the official text of the resolution that will introduce the relevant amendments is not yet publicly available.