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Budget-2013: Social standards for Ukrainians

Budget-2013: Social standards for Ukrainians
From January 1, 2013 Ukraine lives in accordance with new social standards, determined by the main financial document of the country - State Budget. The law on state budget defines minimum subsistence level, minimum wages and social payments. ForUm has learnt what kind of year the state budget offers us this time.

The state budget for 2013 sets the minimum wage at UAH 1147 from January 1 and UAH 1218 from December 1. The article 8 of the state budget defines the amount of hourly wage - UAH 6.88 from January 1 and UAH 7.3 from December 1.

The article 7 sets the minimum subsistence level - the main economic indicator, according to which the government calculates all social payments. This year it will be increased five times:

- per person: from January 1, 2013 - UAH 1110, from April 1 - UAH 1123, from July 1 - UAH 1123, from October 1 - UAH 1146, from December 1 - UAH 1160;

- for children under age of 6: from January 1, 2013 – UAH 980, from April 1– UAH 991, from July 1 – UAH 991, from October 1 – UAH 1012, from December 1 – UAH 1 025;

- for children between 6 and 18 years old: from January 1– UAH 1 250, from April 1– UAH 1 266, from July 1 – UAH 1266, from October 1 – UAH 1290, from December 1 – UAH 1306;

- for able-bodied persons: from January 1, 2013 – UAH 1176, from April 1– UAH 1190, from July 1  – UAH 1190, from October 1 – UAH 1215, from December 1 – UAH 1230;

- for disabled: from January 1, 2013 – UAH 907, from April 1– UAH 918, from July 1 – UAH 918, from October 1 – UAH 936, from December 1 – UAH 948.

Social payments for families with children will grow as well. Thus, the maternity grant will be increased by 8.7% and will make UAH 29 838 for the first child (UAH 27460 last year), UAH 59 675 for the second child (UAH 54920 last year) and UAH 119 350 for the third and next child (UAH 109 840 last year).

Minimum amount of maternity allowance for uninsured Ukrainians will make UAH 1254, and maximum annual amount of childcare allowance for children aged under three years will be increased from UAH 1098 to 1194. Childcare allowance for children under legal guardianship will be increased depending on age from UAH 1831 and 2282 to UAH 1989 and 2539 respectively.

Maximum amount of children allowance for single mothers will be increased as well, also depending on child's age - UAH 497 for children under six (UAH 458 last year), UAH 635 for children between six and 18 years old (UAH 570 last year), UAH 597 for students between 18 and 23 years old (UAH 549 last year).

The new budget also sets the minimum allowance for needy families - 21% of minimum subsistence level for able-bodied person, 75% for the disabled and children and 100% for the handicapped. The law also stipulates that state allowance for needy families cannot be more than 75% of the subsistence level for a family.

Moreover, to settle social issues the state budget of 2013 takes into account such criteria as:
- indexation of study allowances, considered as monetary income;

- amount of annual aid for purchasing study materials (three minimal study allowances for orphans and children deprived of parental care, for pupils and students, who lost parents at the age of 18-23);

- one-time aid for orphans and children deprived of parental care under legal guardianship or wards of state. The aid serves for employment after graduation and makes six minimum living wages.

The state budget of Ukraine for 213 also provides for nominal GDP in the amount of UAH one trillion 576 million, real GDP at the level of 3.4% and inflation at the level of 4.8% (from December to December). The state budget also set marginal deficit amount at the level of UAH 50 billion 432 million, including budget incomes in the amount of UAH 361 billion 510 million 89.1 thousand and expenses - UAH 410 billion 660 million 505.7 thousand. Thus, expected budget deficit is 3.2% of GDP.

Tetyana Hryhoriyeva