How can change the fines and taxes in Ukraine

In 2018, according to the budget resolution in Ukraine on 523 of the hryvnia will increase the minimum wage. In the beginning of this year the minimum salary was raised twice – from 1600 to 3200 hryvnia, to revise the minimum wage in 2017 will no longer be. But next year, employers will be required to pay employees no less 3723 hryvnia, in 2019 the minimum wage will rise to 4173, and in 2020 – up to 4425 UAH.

Thus, every year, social standards will raise by 6 – 16%. The website “Today” has found how the growth of the minimal salary will affect the amount of penalties and taxes in the following year.

Real estate tax

Every year Ukrainians who own real estate with a total area of more than the established norm (a norm is determined by the local authority), have to pay a tax for each “extra” square. Local councils have the right to determine the interest tax rate (from 0 to 1.5% of the minimum wage) and the area of the property that are not taxed (60 square meters per apartment, 120 for the house and 180 square meters in total area of house and apartment).

For example, the city Council took the following decisions for each “extra” square meter to collect 1% of the minimum wage. Resident of Kiev, who owns two apartments a total area of 140 square meters, will have to pay the tax for 80 squares (the norm for apartments in the capital – 60 square meters). It should be noted that the percentage of the minimum wage is taken over the last year. So, next year, over 80 squares will have to pay 2560 hryvnia, and if the minimum salary will increase, as provided for in the budget resolution, in 2019 80 “extra” squares will already cost 2978 UAH.


“Most of the penalties are calculated not from the minimum wage. In particular, all the fines defined in the Code of Ukraine on administrative offences and the Criminal code, is defined as a certain amount of non-taxable minimum incomes of citizens (UAH 17),” – says the head of the practice Decisions and disputes JUSCUTUM Anton Kuts.

Will have to pay more than employers who violate Labor laws. If now for each unformed employee put a fine in the amount of 96 thousand UAH (30 times the minimum wage), already in 2020 for the same violation will have to pay 132 thousand. The same fine is put in the case if the employee is furnished at half rates, and in fact works full-time. If the employer does not pay for additional work at night and on weekends, you will have to pay a fine of 10 minimum wages – 32 thousand UAH at the moment and more than 37 thousand next year.

As noted by Anton Kuts, the minimum salary is also important when assigning offences to categories of offences. For example, stealing is a crime, if the value stolen exceeds 10% of the minimal salary. Now it is 320 USD.