New Reservation Rules: How to Avoid the “Salary Trap” and Protect Your Workforce

Effective June 2, 2026, Ukraine introduced significant changes to its employee reservation (military exemption) rules under Cabinet of Ministers Resolution No. 692. Maintaining a company’s critical enterprise status now depends on the accuracy of its payroll calculations. The government has raised the financial threshold, eliminated the transition period, and introduced stricter requirements for both the company’s average salary and the individual income of reserved employees.

The biggest risk for businesses is the so-called “previous month trap.” Any payroll error or even a minor delay in salary adjustments may automatically invalidate employee reservations for the entire company, with no opportunity to correct the issue retroactively.

Yuliia Zhuravel, Head of Payroll Department at Smart Solutions, shares expert insights and a practical checklist for employers:

• How should companies calculate the new payroll thresholds (the average salary requirement has increased from 2.5 to 3 minimum wages) and what budgets should be planned now?
• Which employees may lose their reservation status starting September 1 due to the new minimum individual income requirements?
• How has Resolution No. 692 changed the rules for part-time employees and the calculation of a company’s overall reservation quota?

Today, even a minor payroll reporting mistake can have serious consequences for your business.

To avoid costly errors and maintain your company’s critical enterprise status, trust Smart Solutions’ experts with your military records management and employee reservation process. We ensure accurate payroll calculations and provide end-to-end support throughout the entire reservation procedure.

Read the full analysis and practical guidance for businesses in the complete article on Dev.ua.