The Minister of Finance of Ukraine Sergey Marchenko told what will be consequences of increase in the minimum wage.

The government is raising the minimum wage to equate it with the subsistence level, and explained that this will not lead to layoffs, as the impact on inflation due to the increase in the minimum wage will be insignificant and may be in the range of 0.5-1 %.

The head of the Ministry of Finance Sergei Marchenko said this on several TV channels.

«I want to say that we are not taking uncalculated steps, for us the key task was to equalize the minimum wage and, in fact, the subsistence level, which today is higher than the minimum wage — 4948 (hryvnia — ed.). Therefore, this situation is unacceptable, and our task here is that we simply have to simply take a step towards people who receive a salary lower than the subsistence level. This is the first. Another component is the ratio between the minimum wage and the average wage. Ukraine belongs to the category of countries where this ratio is 43-45% «, — Sergey Marchenko told.

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According to him, in France and Portugal this figure is 62-63%, in the UK 55%, and in Poland 54%.

«We also believe that a sufficient level should be above 50%. In the range of 50-60%. Therefore, this is a scientifically sound level that allows us to implement this measure painlessly. « The minister added.

He added that the impact on inflation due to the increase in the minimum wage will be insignificant and may be in the range of 0.5-1%.

“It may partially affect the cost of certain products, but it will not lead to layoffs or anything else. I believe that this will only lead to the de-shadowing of wages, and workers will receive a legally larger amount of money, respectively, will pay more taxes and a single social contribution to the budget and the Pension Fund. «, — Sergey Marchenko told.

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According to him, the budget has UAH 4 billion to increase the minimum wage. The budget for next year will be planned taking into account the increase in the minimum wage.

«We believe that more than 90% of businesses will act rationally and increase wages, because, given the level of shadowing of the economy, you are well aware that the lion’s share of wages is paid in envelopes.», — Sergey Marchenko added.

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