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).
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