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The minimum wage will increase again when the “rich” Ukrainians and how it will affect the economy

The increase of the minimal wage plan from 1 January. Experts: businesses are unlikely to be affected

In the budget resolution for the next three years, the minimum wage will increase annually for 300-500 UAH

The Ukrainian government has announced what will be the new minimum wage — 3723 UAH. “Today” figured out when to wait for higher incomes, and how it will affect our economy.

OPTIONS. That during the budget discussions for next year priority will be raising the minimum wage, speaker of the Verkhovna Rada Andrei Parubiy announced in early September. And even the people’s deputies voiced the desired figure. “We appeal to the Cabinet with an initiative to raise the minimum wage to the level of 4,000 hryvnia,” — said at the first deliberative session of Parliament, the head of the BPP Arthur Gerasimov. But during the “hour of questions to the government” the Minister sotspolitiki Andrey Reva a little cooled the ardor Gerasimov, noting that the first step after the adoption of the pension reform will increase the minimal salary up to 3764 UAH. He added that after last year’s increase of the minimum wage from 1,600 to 3200 UAH in the country has become more and more people receiving a “white” salary — payers of single social contribution was 400 thousand more.

Finance Minister Alexander danyluk, in turn, made the edits. According to him, from 1 January 2018, the minimum salary will be UAH 3723: “This is a realistic figure. And you can guarantee that this can be implemented without risk for the financial system”. Note that raising the minimum wage to UAH 523 was spelled out in the budget resolution for the next three years, which was adopted in June. It says that in 2019, the minimum wage will grow to UAH 4173, and in 2020 — is going to be 4425 UAH.

BUSINESS AND PRICES. According to experts, people are not very clear on a “premium”. Head of the Secretariat of the Council of entrepreneurs under the Cabinet of Ministers Andrei Zablovsky says that the next increase of the minimal salary is unlikely to impact on Ukrainian business and will drive him into a shadow. “Those who paid before “white”, will continue to pay. Those who worked in the shadows, too, does not react to a new figure. This increase when compared with last year, is not significant and is unlikely to give any serious negative effect for entrepreneurs. But, of course, need to consider effects of inflation”, — the expert adds. Counterpart support and economic analyst Ivan Nikitchenko. “The business will stand. This is not actually the critical growth — a little more than 10% of the current minimal salary.”

In turn, economist Alexander Okhrimenko believes that even this “addition” to wages affect the prices and add to inflation 5%. In the end it, given the forecasts of the national Bank for next year will be 13%. “The minimum wage we need to raise anyway. Moreover, it needs at the moment to be about 6 thousand UAH. But there is one very important factor — can not be raised in such an automatic method. Even these 500 UAH had to be broken and to raise at least 100 UAH per month. As a result, prices will not grow as quickly. We have many abused prices this year. I’m not saying that they arose only due to the minimal salary, but it was one of the major factors. So, nominally we have salary increased, in total, almost 40%, but real income of the population grew by only 20%,” — he concluded.

Business: it will be difficult

The owner of the agricultural company that grows flax, Irina Kosciuszko says that the increase of the minimal salary, they have no people, “And the last increase minimal salary up to 3200 UAH does our company no impact — we pay on-white and we have salary start from 5000 UAH”.

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