Salary indexation in 2026

In 2026, the Law of Ukraine “On the State Budget of Ukraine for 2026” sets special rules for indexation of monetary incomes of the population. In particular, indexation is calculated “from zero,” and the indexation amount accrued in December 2025 is not paid in January 2026.

Please note that wage indexation is tied to a reference (base) month. From which period and how exactly should indexation be applied in 2026?

How to calculate wage indexation for 2026: key rules

In 2026, employers should take into account the following basic requirements for calculating wage indexation:

• for indexation purposes, the starting point (the beginning of cumulative calculation) is January 2026;

• January 2026 is taken as 1 or 100%;

• the Consumer Price Index (CPI) used for indexation is calculated cumulatively starting from January 2026;

• the indexation amount accrued in December 2025 is not paid in January 2026.

2026 social indicators that affect indexation

The indexation amount is calculated within the subsistence minimum for able-bodied persons. In 2026, the key indicators are:

• subsistence minimum for able-bodied persons — 3,328 UAH;

• minimum wage — 8,647 UAH (monthly), 52 UAH (hourly).

Indexation calculation for part-time working hours

For part-time work, wage indexation is applied under the following rules:

• if an employee has not worked a single day during the month, indexation for that month is not accrued;

• if an employee works part-time, the indexation amount is first determined for full-time work and then paid proportionally to the time actually worked;

• if an employee worked an incomplete month (vacation, sick leave, etc.), indexation is calculated proportionally to the days/hours actually worked.

New rules: how the “reset” works in 2026

In 2026, cumulative CPI calculation for indexation starts from January 2026 (January is taken as 100%). At the same time, the indexation amount accrued in December 2025 is not paid in January 2026. Therefore, the calculation for 2026 effectively starts anew.

How does indexation depend on an increase in the official salary rate?

The month in which the tariff rate (official salary) is increased is considered the base month for a specific employee. For example, if the official salary is increased from February 1, 2026, then February 2026 becomes the base month for indexation for that employee.

The logic is the same thereafter: the base month becomes the month in which the official salary (tariff rate) is increased for the position.

Specific features of indexation accrual in 2026

If an employer increases the accrued salary without increasing the official salary (tariff rate), the base month does not change. This applies to both one-time and ongoing payments, such as monthly allowances and bonuses.

The base month also does not change when the official salary (tariff rate) is reduced.

According to Procedure No. 1078, a fixed indexation amount may arise if the salary increase does not cover the indexation amount. The fixed indexation mechanism has not been abolished and may be applied under the conditions specified in the Procedure.

“Fixed” indexation in 2026

Fixed indexation is the difference between the indexation amount (that would be due to the employee) and the amount of the salary increase. For example, the official salary is increased by 300 UAH, while the indexation amount would be 350 UAH. The difference of 50 UAH is the fixed indexation amount.

If the salary increase exceeds the indexation amount, indexation for the relevant month is not accrued.

How to calculate indexation in January 2026?

Conclusions

To calculate wages correctly in 2026, an employer should remember:

Wage indexation remains a relevant topic for sole proprietors and accountants. It is important to track the official CPI figures and changes in regulations in order to understand when an employee becomes entitled to current wage indexation.