Rising Costs for Employee Reserving Ends Business Stability
- Proposed changes to reserving criteria may harm businesses
- Minimum wage for reserving employees could rise significantly
- Employer costs for reserving staff could exceed 600,000 UAH monthly
The government has proposed amendments to Resolution No. 76 regarding the criteria for reserving employees from mobilization. These changes, according to MP Oleksandr Fedienko, could negatively impact businesses and even drive some to operate in the shadow economy.
A major concern is the potential increase in the minimum wage for reserving employees from 21,600 UAH to 26,000 UAH. While this shift may not affect defense companies with full quotas and government contracts significantly, it poses a challenge for other businesses, particularly in regional areas.
Considering taxes and deductions, employers' expenses for each reserved employee may rise to between 31,000 to 33,000 UAH. For a staff of 20, that translates to a monthly cost exceeding 600,000 UAH.