The objective of the short analytical note \u201cOn the\nratio between the size of the minimum wage and the subsistence minimum\u201d is to\nshow the consequences of the increase of the minimum wage which should be taken\ninto account by the government when developing follow-up policies on the labour\nmarket.<\/p>\n\n\n\n
Due to the mental link of the minimum wage (MW) and the\nconsumer minimum, the increase in MW can be interpreted by the society as its\nindexation of the increase in the cost of living, which will form expectations\nfor an appropriate adjustment of the subsistence minimum and inflationary\nexpectations.
\n
\nTherefore, an increase in the minimum wage is likely to increase the\nexpectations of the society for raising the level of all social benefits.\n\nAccording to the State\nStatistics Committee, in 1Q16 vs 1Q15, the average wage in the income of the\npopulation increased by 15.4%, while the social aid \u2013 only by 8.1% [1], Thus,\nthe gap between the incomes of employed Ukrainians and those living at the expense\nof social payments increased. In case of retention of this trend, it will strengthen\nthe expectations of recipients of social benefits for their indexing.
\nA sharp increase in the minimum wage will require escaping from the Unified\nTariff Scale for remuneration of public servants and budget employees (it requires\nsome changes in the legislation, namely, the Civil Service Law, which should\nprecede the initiatives to radically increase the minimum wage), as well as the\nsolution of issues of the amount of fines, declarations, etc. related to MW.
\n[1] CES calculations based on the data of statistical bulletins \u201cSpending and\nresources of households in Ukraine\u201d http:\/\/www.ukrstat.gov.ua\/druk\/publicat\/kat_u\/publdomogosp_u.htm\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"
The objective of the short analytical note \u201cOn the ratio between the size of the minimum wage and the subsistence minimum\u201d is to show the consequences of the increase of the minimum wage which should be taken into account by the government when developing follow-up policies on the labour market. Due to the mental link […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[176,403,197,143],"tags":[546,574],"experts":[169,171,247],"news_type":[140],"class_list":["post-8271","post","type-post","status-publish","format-standard","hentry","category-macroeconomics-en","category-human-capital","category-research-list-en","category-home-news-en","tag-budget-en","tag-social-policy-en","experts-dmytro-yablonovskyy","experts-iryna-piontkivska-en","experts-yuliia-ruda-en","news_type-researches"],"acf":[],"_links":{"self":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/8271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/comments?post=8271"}],"version-history":[{"count":0,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/8271\/revisions"}],"wp:attachment":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/media?parent=8271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/categories?post=8271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/tags?post=8271"},{"taxonomy":"experts","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/experts?post=8271"},{"taxonomy":"news_type","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/news_type?post=8271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}