Due to the inflation jump in Ukraine, salaries will be indexed: who will get how much money already in November

In November, Ukrainians' wallets will get a little fuller — due to high inflation, employers are obliged to index employees' salaries. This is provided for by several legislative acts and applies to both public sector employees and those working in the private sector.

Who will get a raise and by how much, and who won't and for what reasons — TSN.ua investigated. Spoiler: you won't get rich. Legal basis: is indexation mandatory? The obligation to index the incomes of hired employees is enshrined in the Labor Code of Ukraine (LC, Art.

95), the law "On Remuneration of Labor" (Art. 33), the law "On Indexation of Monetary Incomes of the Population," and finally in the law on the state budget for 2026. The indexation mechanism is prescribed in Government Resolution No. 1078 of July 17, 2003. The main purpose of this mechanism is to partially compensate people for the rising cost of food, medicines, and services.

An important feature of 2026: Article 41 of the state budget law for this year completely zeroed out the previous indexation. The calculation of the consumer price index started from zero from January. According to clarifications from the Ministry of Social Policy, January is the base month from which calculations begin.

Inflation for January is not taken into account, because from January 1, 2026, a planned increase in the minimum wage to 8,647 UAH and official salaries under the Unified Tariff Grid (UTS) took place. In particular, the salary of the 1st, lowest, grade rose to 3,470 UAH (+275 UAH). Therefore, the countdown of money depreciation begins from February.

At the same time, the right to additional money does not arise immediately, but a month after the State Statistics Service officially publishes the inflation index. Recalculation occurs if the inflation index after the base month exceeded 103%, i.e., prices rose by an average of 3%.

That is, in effect, salaries are indexed two months after prices rise by 3% or more. The first indexation of salaries this year took place in June, although, according to official monthly data from the State Statistics Service, inflation for February-April was 104.2% (prices rose by 4.2%).

This index was published in May, and employees received the supplements in June. The supplements remained unchanged during June-August, because prices during this time rose by only 1.2%. In September, inflation sharply accelerated and amounted to 102.1%. If multiplied by the summer growth, it comes to 103.3%.

This index was made public in October, so in November the supplement amounts will increase by another 3.3%. What's "in your pocket" Unfortunately, those who have a substantial salary and perhaps expect that in November it will increase by several thousand will be disappointed.

Because by law, it is not the entire salary that is increased, but only its part, in the amount of the subsistence minimum (PM) for able-bodied persons. It equals "as much as" 3,328 UAH per month. Accordingly, 3.3% of the PM is… 109.82 UAH gross and 84.56 UAH after deducting 23% in taxes (18% personal income tax and 5% military levy).

Not much, enough for two loaves of bread or a cup of coffee with a pastry. However, for those receiving the minimum wage, in particular technical workers in the public sector (cleaners, cloakroom attendants, janitors, couriers, etc.), even such a supplement is significant. According to Art.

3-1 of the Law of Ukraine "On Remuneration of Labor," indexation is accrued on top of the minimum wage amount. If we add the previous indexation for price growth from February to June, which amounted to 139.78 UAH (107.63 UAH net), the new accrual amount is: 3,328 UAH × 7.6% = 252.93 UAH (194.75 UAH net monthly).

Example calculation for the 1st tariff grade in November 2026: Official salary: 3,470 UAH. Supplement to the minimum wage level: 8,647 — 3,470 = 5,177 UAH. Indexation (above the minimum): 252.93 UAH. Total accrued: 8,647 + 252.93 = 8,899.93 UAH. The head of the secretariat of the Council of Entrepreneurs under the Cabinet of Ministers, economist Andriy Zablovskyi, explained why the indexation is so meager.

"Let me remind you: the law 'On Indexation of Monetary Incomes of the Population' was adopted by the Verkhovna Rada of the Ukrainian SSR in July 1991, even before Ukraine's independence. The law has long been outdated, although numerous amendments have been made to it.

Due to the war and the difficult situation in the country, there is no possibility to replace it with a new law that would meet European standards," says Andriy Zablovskyi. — Why is the subsistence minimum (PM) indexed and not the minimum wage?

The concept of the subsistence minimum appeared in 2000; before that, the term "minimum consumer budget" was in effect. The PM in 2000 equaled 287.63 UAH, while the minimum wage was only 118 UAH, so the larger amount was indexed.

Currently, the PM for able-bodied persons is 2.6 times lower than the minimum wage, but no changes have been made to the law; the subsistence minimum is indexed as before. Another factor is economic — funds for indexing the PM are currently needed much less, which is important for the state budget."

How indexation is "squeezed" But even the "coffee money" supplement will far from be received by everyone.

While in the public sector everything is transparent: indexation is paid from savings in the wage fund (when there are vacancies) or additional allocations from state or local budgets, in the private sector the employer has plenty of means to "squeeze" indexation.

Commercial firms, for example, massively use a completely legal accounting technique called "reshuffling."

By law, if the employer in the month when indexation arises or earlier raises the employee's official salary by an amount that covers this very indexation, the obligation to pay "inflation" money disappears, and the month of the salary increase becomes a new base month for the employee.

How the scheme works. In June, a mandatory indexation of 139.78 UAH was supposed to take place. The head of a private firm issues an order: raise the employee's salary by 140 UAH, but simultaneously reduce by 140 UAH their monthly bonus, which is paid at the director's discretion. Result: the employee receives the same money in hand as the month before.

However, June became the base month for them, the previous inflation was annulled, and in the current November such an employee will receive 0 UAH in indexation, because their new personal inflation chain (for July-September) was only 102.5% and did not reach the 103% threshold.

However, according to Andriy Zablovskyi, an increase in the official salary even at the expense of reducing the bonus is a small but a plus. The bonus exists today, but tomorrow it was canceled due to a crisis. The salary cannot be reduced without the employee's consent.

In addition, a higher salary automatically increases future vacation pay, sick pay, and makes the salary certificate more substantial for the bank when applying for a loan.

The fight for justice and realities For ignoring the indexation law by a manager, liability is provided: if an inspection by a representative of the State Labor Service, which monitors compliance with labor legislation, finds a violation, then according to Art.

265 of the Labor Code, the enterprise will be fined two minimum wages for each "non-indexed" employee, which is 17,294 UAH. And the manager personally will pay from their own pocket from 30 to 100 tax-exempt minimum incomes of citizens (510–1,700 UAH).

If the head of a budget institution or a private boss intentionally and without grounds fails to pay indexation for more than one month, criminal liability arises. Under Art.

175 of the Criminal Code of Ukraine, this is a fine of 5,100 to 17,000 UAH, or corrective labor for up to two years, or imprisonment for up to two years with deprivation of the right to hold certain positions.

However, Andriy Zablovskyi noted that in private business these norms hardly work, because a complaint to the State Labor Service can cost the fighter for justice dearly. By law, they seemingly cannot be fired, but in practice conditions will quickly be created for dismissal at their own request.

"In many business structures, employees don't even suspect that they are entitled to some meager indexation because prices have risen," analyzes Andriy Zablovskyi. — They have a different motivation; a system of bonuses for effective work is in place.

If you are, for example, a salesperson, then exceeding the plan, attracting a new client, or a successful deal will bring you thousands of hryvnias in bonus." Conclusion Salary indexation due to inflation is noticeable for low-paid categories of workers.

As a rule, these are pensioners, persons with disabilities, or students who work part-time in their free time from studies. And for highly paid employees, it is economically more beneficial to direct their energy toward intensively earning high bonuses and rewards than toward disputes over symbolic salary indexation.