Salary growth and what can business expect in 2024?
The last 2 years have been challenging for the economy of Ukraine and the job market. However, the state and the population are resiliently navigating through these trials. Despite all the difficulties and challenges, the Ukrainian business is seeking avenues for recovery and anticipates an increase in wages in 2024.
Trends in Salary Changes As of October 1, 2022, the minimum wage was set at UAH 6,700. According to the recently approved state budget for 2024, it will increase to UAH 7,100 on January 3 and to UAH 8,000 on April 1.
According to the forecasts of the Ministry of Economy, there will also be changes in the nominal average monthly salary of Ukrainians in 2024. It will rise from UAH 18,100 to UAH 21,800.
“In the last 6 months, salaries have increased on average by 10% in various companies. This trend will continue in the coming year, with an expected further growth of 15-20%. This is primarily due to a shortage of personnel and businesses’ competition for qualified employees,” – says Olena Kutsokon, Head of Recruitment at Smart Solutions.
This information is also confirmed by the research of the European Business Association, according to which 87% of Ukrainian companies plan to increase employee incomes and expand their staff in 2024.
According to Olena Kutsokon, the current shortage of personnel is approximately 30%. Therefore, businesses resort to various strategies for retaining and attracting talent. They offer not only financial incentives but also non-material motivators, such as training and employee development.
Moreover, the shortage of specialists prompts companies to review their hiring strategies, attracting not only young workers but also professionals approaching retirement age. This helps overcome ageism, as employers evaluate each specialist based on their professional skills and potential rather than age.
Current State of Wage Payment According to Olena’s analysis, the top five cities with the highest average salaries are:
- Kyiv – UAH 17,000-18,000
- Odesa, Kharkiv – UAH 15,000
- Lviv, Dnipro – UAH 14,000
The analysis of median salaries in different regions shows that the most significant increase during the year was observed in cities in the western part of the country (up to +23%) and in central regions (up to +17%).
This dynamic is a direct result of active business relocation and people moving from front-line regions to safer areas. This is also indicated by the pace of labor market recovery in these territories.
According to the research by OLX, the majority of employers (44%) review salaries once a year, 23% do it every six months, and 7% do it monthly.
“Make a salary market analysis at least twice a year – at the end of the year (November-December) and also in April-May. Monitor the dynamics to understand what material motivation employees and candidates expect. This is extremely important to retain current workers and stay competitive for new seekers,” – says the expert.
Top-Paid and In-Demand Professions According to Work.ua data, the rating of professions with the highest salaries in 2023 (excluding managers and IT) is led by representatives of the following specialties:
- Military personnel – from UAH 20,000 to UAH 125,000.
- Media buyer – UAH 55,000.
- International truck driver – UAH 45,000.
- Confectionery production technologist – UAH 40,000.
- Realtor – UAH 37,500.
- Business analyst – UAH 35,000.
Among professions with the highest demand in the job market, Olena Kutsokon highlights the following:
- Accountant – UAH 14,000-20,000.
- Sales Manager – UAH 15,500-25,000.
- Sales consultants – UAH 11,000-15,000.
- Drivers – UAH 18,000-25,000.
- Artificial intelligence specialists – UAH 22,000.
- Doctors – UAH 18,000.
- Psychologists – UAH 18,000.
- Construction workers – UAH 19,000-22,000.
- SMM specialists – UAH 17,000-19,000.
Competition has also significantly increased in the IT industry and related professions. The number of candidates per position has increased by 10% in the current year.
