Financial institutions are now permitted to increase variable remuneration up to 200% of base salary
The National Bank of Ukraine has updated the regulatory framework for the banking system to align it with European Union standards. The changes regulate rules for staff remuneration and the procedure for disclosing prudential information. This is reported by the portal PromPolitInform, citing information from the National Bank of Ukraine.
The regulator has adjusted its regulatory acts, following the provisions of the National Program for the Adaptation of Legislation to EU Law, approved by the government decree of April 1, 2026, No. 438. The plan for European integration measures, adopted by the NBU Board decision of March 18, 2026, No. 75-rsh, was also taken into account.
New rules for labor remuneration
The updated Regulation on Remuneration Policy in a Bank is based on European directives that set requirements for remuneration systems in financial institutions. In particular, banks are now enabled to increase the maximum level of the variable component of employee remuneration to 200% of their fixed salary.
To implement such a mechanism, decisions must be approved by the general meeting of shareholders or the sole participant of the bank by a majority of more than two-thirds of the votes. Prior to this, the bank’s council must justify the necessity of the increase and assess its impact on the capital adequacy and general liquidity of the institution in the future.
Additional conditions for shareholders
The regulator established a clear list of requirements for applying increased payments, including inserting corresponding clauses into the bank’s articles of association. Additionally, participants must conclude a corporate agreement that provides for a voluntary restriction of voting rights on this issue for individuals who have a personal financial interest in such payments.
These measures are aimed at creating more balanced approaches to the structure of staff income. The National Bank emphasized that payments should not negatively affect the financial stability of banks in either the short or long term.
Disclosure of prudential data
In addition to remuneration issues, the National Bank revised the rules for disclosing prudential reporting. Banks have been granted a one-year extension for developing internal procedures and preparing the first reports, which will allow financial institutions to reduce their operational burden.
This decision is intended to provide banks with time to adapt their own IT systems and develop high-quality data disclosure processes. Simultaneously, the regulatory framework has been supplemented with standards from Regulation (EU) No 575/2013 of the European Parliament and of the Council, which provides for the use of uniform templates for reporting on remuneration policy.
Illustrative photo: Irina Vol. Zakaluzhna / CC BY-SA 3.0
