What is the minimum wage in Ukraine

Since the beginning of 2017, the official minimum wage in Ukraine has doubled immediately. It amounted to 3200 UAH. (in December 2016 - 1600 UAH.). The amount accrued per month can now not be less than this figure. The innovation concerns both employees of the private sector and budget organizations.

The hourly minimum wage also rose. Since January 1, it has become UAH 19.34 in Ukraine. (December 2016 - UAH 9.59).

What regulations regulate the increase

The deputy initiative on raising the level of the minimum wage appeared in the fall. On September 15, 2016, it was submitted to Parliament in the form of Draft Law No. 5130.

After consideration and refinement, the supreme legislative body voted positively. So, on December 6 of that year, a new Law of Ukraine appeared. The minimum wage in it is mentioned in the perspective:

• changes in the wording of its very concept;
• determining the order and conditions of establishment;
• detachments from the amount of the subsistence minimum.

After signing by the president, this normative act received the number 1774-VIII. Its adoption made it possible to amend the main legal document of the country - the Law "On State Budget". Article 8 states that from January 1, 2017, the minimum monthly salary may not be less than 3200 UAH.

Implications for Small Businesses

A two-time increase in the lower threshold of citizens' income entailed a tangible change in the amount of mandatory contributions to the budget for private entrepreneurs. According to Ukrainian law, the amount of a single social contribution from the FLP of the second and third groups is 22% of the minimum wage. That is 704 UAH. Compare with 2016 year.

Moreover, if the FLP did not have activity in the current period of 2016, then he did not pay deductions. Since the beginning of 2017, ERUs have been paid constantly, regardless of whether the movement of funds took place with an individual entrepreneur or not.

How have the salaries of public sector employees changed

Unfortunately, the increased minimum wage in Ukraine did not affect the change in the Unified Tariff Scheme too much. Salaries of employees of budgetary organizations tied to another indicator - the cost of living.

The amount for the first category was equal to 1600 UAH., The second - 1744 UAH., The third - 1888 UAH. And only from the 12th category the minimum wage breaks, the salary is 3392 UAH.

However, according to the law, state employees should also not be charged less than 3200 UAH per month. For this, the concept of minimal was changed. Now it includes all bonuses, surcharges, allowances. Due to this, income reaches the threshold amount.

State control

In 2017, liability for violation of legislation in the field of remuneration of labor was greatly tightened. Business entities may be subject to the following fines:

• UAH 320,000 - if checks are not allowed;
• 96 000 UAH - for an unformed employee, as well as partially or fully receiving remuneration for labor “in an envelope”.

The fiscal service ensures that employers fill out full-time employees. After all, an unofficial surcharge leads to the concealment of real incomes and reduces tax contributions to the budget.

The government has created a special hotline. The caller can report violations related to the accrual of the state guaranteed income to the employee.

By raising the minimum wage, Ukraine has shown that it is striving to improve the standard of living of its citizens and remove wages from the shadows.However, this change was more likely to affect workers in the private sector than in budget enterprises. In addition, the government ambiguously made it clear that until the end of the year re-increases are not worth waiting for.