Ukrainians received lower salaries in December due to tax burden, which increased to 45%

The tax burden on Ukrainians' salaries increased in December. This follows from the entry into force of certain provisions of the law on raising taxes.

The new tax changes, among other things, provide for an increase in the military levy rate for individuals from 1.5% to 5%.

The changes come into force on December 1 of this year.

For example, if UAH 8,000 of the minimum wage are accrued, then the military levy will be 5% or UAH 400 from it (previously it was 1.5%), personal income tax 18% - UAH 1,440 and single social contribution (paid by the employer) 22% - UAH 1,760.

Thus, a person will receive UAH 6,160, and another UAH 1,760 will be paid additionally by the employer.

Thus, the tax burden on the payroll increased from 41.5% to 45%.

As Ukrainian News Agency reported, in many countries the average share of the amount of income tax, contributions and deductions of the employer and employee in 2022 was 34.6%.

The lowest figures were in Chile, Colombia, Costa Rica - 0%.

More developed countries had the highest figures. On average for the countries of the Organization for Economic Cooperation and Development, they were 41.2%.

Compared to Ukraine, in these countries the effective tax rate is much lower, if we take into account the total level of family income.

For example, a Belgian living alone pays 53% of taxes, a German - 48%. Taking into account the composition of the family, the tax burden for the same level of average salary in these countries is 15.2% and 15%, respectively.

On November 28, 2024, President Volodymyr Zelenskyy signed the law on tax increases, adopted by the Verkhovna Rada on October 10 (draft law No. 11416-d).

On November 27, Prime Minister Denys Shmyhal announced that the law on tax increases would come into effect on December 1, as required by key creditors, including the International Monetary Fund.