The Ukrainian government
means to revise subsistence level and minimal wage in the first quarter of
2007. The relevant ministries have already started drafting basic principles of
forming subsistence level in accordance with the Ukrainian legislation and
international norms, “Cabinet press office” reported.
They are instructed to
hold a scientific-public expertise of the set of food, nonfoods and services
for setting subsistence level. Moreover, during the first quarter the actual
amount of the subsistence level will be monitored to draft relevant proposals.
On outcomes of fulfilment
of the planned incomings to the state budget in the first quarter of 2007 the government
will propose the parliament to amend the 2007 budget in increasing the minimum
wage since May 1 to 420 UAH, since August 1 to 430 UAH and since December 1 to
460 UAH (1 USD=5.05 UAH).
While setting the amount
of the minimum wage for 2007 the Govt considered budgetary resources and the
need to improve the correlation of minimum wage to subsistence level per a
capable person. In December 2006 this correlation amounted to 79.2% and in
December 2007 it will reach at least 82.1%.
While forming the 2007
budget the Ukrainian government also considered that introduction of a new minimum
wage must not cause "galloping" growth of product and service cost,
sky-rocketing prices on consumer market and unemployment.
Out of the general fund
of the budget one half refers to social outlays, i.e wages and charges (8.5 bn.
UAH), pensions, scholarships and other social payments
(4.8 bn. UAH).
