The article is devoted to the study of wage subsidies as a tool to support the income of the population in a crisis. The importance of this practice is due to such advantages as: maintaining jobs and equalizing incomes, ensuring uninterrupted work experience, preventing mass layoffs and unemployment, and supporting the economic structure of the country. Under the conditions of the war, when the economy of Ukraine suffered enormous costs, the issue of preventing poverty of the population became more acute, and the scientific search for tools to support employment and income is important. The purpose of the article was to study the institutional features of wage subsidies with an assessment of the effectiveness of this tool in the framework of social policy with the justification of areas for improvement in Ukraine. To achieve this goal, the following general scientific and specific methods were used: the method of theoretical generalization, comparative analysis in the process of determining the nature and characteristics of wage subsidies in different countries; systemic method - to determine the criteria, positive and negative aspects of the institution under study; the method of structural and functional analysis - to determine the directions for improving this practice in Ukraine. The features of the application of this tool in different countries and institutional features in Ukraine were studied, which made it possible to identify weaknesses and suggest areas for improvement to improve the efficiency of income support in wartime conditions.