New Remuneration System

On 19 January 2026, the Verkhovna Rada of Ukraine registered Draft Law No. 14387 – Law of Ukraine “On a Fair Remuneration System in Ukraine”.

The Draft Law proposes a systematic update of approaches to regulating remuneration, introducing uniform basic principles: fairness, non-discrimination, compliance with the market value of labour, the financial capabilities of the employer, and transparency.

These principles will be universal in nature and will apply to enterprises of all forms of ownership, including private businesses and individual entrepreneurs who employ hired labour.

One of the key innovations for business is a review of the approach to setting the minimum wage. The Draft Law proposes linking this indicator to the median wage in the country – an indicator where 50% of employees receive income below it and 50% above it.

Unlike the average wage, the median is not distorted by the extremely high incomes of certain categories of workers and is considered a more accurate reflection of the real level of income in society.

The Draft Law provides for the gradual implementation of this approach:

• from 1 January 2027, the minimum wage must be at least 50% of the median wage;
• from 2028, it must be 55% of the median wage;
• from 2029, it must be 60% of the median wage.

It is important to note that the median wage is not set as a mandatory level of remuneration. It is used as a baseline indicator for determining the minimum wage that employers are required to guarantee.

We will closely monitor further developments in this area, in particular regarding the status of this Draft Law, and report on them in the future Legal News.