"After four years, the situation is more stable," Adam Szlapka, spokesman for Poland's pro-European government, said at a press conference.
"These extraordinary regulations can be phased out and we can move from temporary solutions to systemic ones."
The draft law, which will now go to parliament, says initial aid for Ukrainians was "adopted as an emergency, temporary measure".
It includes plans to repeal previous provisions creating a separate system of assistance for Ukrainians, and would eliminate most of their special entitlements to social benefits, accommodation and medical care.
Some existing protections, such as means of confirming legal residence and identity, will be retained.
Prior to its adoption by the government, the draft law drew criticism from business interests.
The Lewiatan Confederation, an NGO representing Polish entrepreneurs, argued the move "could paralyze the labour market".
In a press release, it said the protections have "enabled legal employment for around 1.24 million people", citing that Ukrainians currently account for 66 percent of Poland's foreign workforce.
Following the government's announcement, Lewiatan clarified that a new draft included "transitional demands" that would help to ease these impacts.
In 2024, Poland's Ukrainian workforce accounted for 2.7 percent of the country's GDP, amounting to more than the total Polish aid contribution.
Poland was the entry point for millions of Ukrainian refugees crossing into Europe at the invasion's outset, and remains a critical hub for the delivery of humanitarian and military aid.
But public opinion on Ukrainians in Poland has soured since the beginning of the war.
According to a January poll by Poland's Centre for Public Opinion Research, only 48 percent of Poles approve of helping Ukrainians fleeing the war, while 46 percent are opposed.
This is the lowest level of support since measurements began following Russia's annexation of Crimea in 2014.
Conservative-nationalist Polish President Karol Nawrocki has echoed this sentiment, announcing at the start of his term last year that he would not sign any "law concerning special assistance to Ukrainian citizens".
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