Ukraine has increased the «minimum salary» and the cost of living. Groisman: the higher wages will stimulate economic growth

In Ukraine on 1 December, comes into force the law that provides for raising the minimum wage to 1,544 thousand hryvnia, and the minimum wage to 1.6 thousand. The relevant law the Parliament passed on may 19, reports «Economic truth».

Ukrainians owed for heating and hot water to more than 6 billion

The law was designed with the purpose of increase of social standards (in particular, wages, benefits, pensions) and increase the amount of subvention for granting benefits and housing subsidies to the population for housing and communal services.

In particular, the subsistence minimum from December 1 is set at 1,544 thousand UAH, for children up to 6 years — 1,355 thousand hryvnia, children from 6 to 18 years — 1,689 thousand, able — bodied- 1600 UAH for incapacitated — 1,247 thousand.

The minimum monthly salary from December 1 is set at 1.6 thousand.

In connection with the planned raising the minimum wage also increase expenses of the budget, which are sent to the Pension Fund on payment of pensions, at 576 million hryvnia — UAH 145 465,5.

Raising the minimum wage to RS 3200, planned by the government in the draft state budget for 2017, will stimulate domestic demand and promote growth in economic activity, said in a television broadcast, Prime Minister of Ukraine Vladimir Groisman.

«The decision to raise the minimum wage to UAH 3200 is a very drastic step, but fair. This recovery, on the one hand, justice on wages, and on the other hand, it will stimulate demand, economic growth, production growth. We believe that it will have a positive effect on the economy, – said Groisman. – People need to pay what they owed».

In addition, Groisman said that from December 1, in Ukraine 10% increase in the minimum wage and pension, and since the beginning of the year increase in social standards was about 16%. According to him, the economic situation in the country allows such steps. And now, said the head of government business in Parliament, which should adopt the draft state budget and related bills.

«My job as Prime Minister to develop the national economy, create opportunities for investment and production in the country. And all that we receive from the economy will be invested in the quality of people’s lives: health, education, infrastructure, roads,» – said Groisman.

As reported, the draft state budget for 2017, the Cabinet lays the growth of at least 3% and raising the minimum wage to RS 3200. This means that Ukraine may not be wages below RS 3200. However, this rule requires legislative approval by Parliament.

Vice-Prime Minister Pavlo Rozenko noted that the increase in the minimum wage to 3.2 thousand hryvnia will not affect the subsidy for the designated heating season the period of 2016-2017 years.

President Petro Poroshenko noted that the increase of the minimal wage will not increase taxes for business.




Ukraine has increased the «minimum salary» and the cost of living. Groisman: the higher wages will stimulate economic growth 01.12.2016

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