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In addition to living wage, Ukraine will introduce a new social standard for income – a rational consumer budget. It will be calculated based on the level of consumption of goods, whose quality is above average, acquisition of housing, rehabilitation and recreation, culture and education, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine reports.
At the last meeting, the government approved the bill "On amending the Law of Ukraine ‘On state social standards and state social guarantees.’" A new social standard – a rational consumer budget, proposed by the Ministry of Social Policy - was approved by the government. The announcement was made by Natalia Korolevska, Minister of Social Policy at a press conference for the regional media.
Introducing the concept of "a rational consumer budget" supports Article 4 of the Law of Ukraine "On state social standards and state social guarantees". It includes a classification of social standards by satisfaction of needs - "minimum consumption standards" and "rational consumption standards." “Today, these standards of rational consumption are not calculated," Korolevska said.
Thus, after the law takes effect, government experts believe, minimum social payments may be raised. In fact, Ukraine uses the living wage as a basic social standard for the minimum social payments: minimum wage (1,218 UAH), minimum pension (949 UAH) etc..
According to Korolevska, a rational consumer budget calculations can cover for products of higher quality, the cost of acquisition of housing, rehabilitation, recreation, cultural and educational activities, mandatory payments and other expenses. "This index can be used to assess the level of life of the population, in order to develop and implement social programs," she said.
Ministry of Social Policy experts say that after the law is approved, the Ministry will work with academic institutions and social partners to develop and validate a methodology for determining of the rational consumer budget.