President: Raising minimum wage is step towards civilized standard of living in Ukraine

President: Raising minimum wage is step towards civilized standard of living in Ukraine

Ukrinform
Raising minimum wage will facilitate bigger incomes of public sector employees - teachers, doctors, social workers - as their salaries are calculated using the unified wage scale pegged to the minimum wage.

Zelensky reminded that the increase in the minimum wage up to UAH 5,000 from September 1, which is outlined in the president's bill, is the first phase. During 2021, the next phases of increase are to be implemented.

"I am sure that the lawmakers will vote for the bill submitted by the President of Ukraine to raise the minimum wage up to UAH 5,000. Then there will be the second phase of this program – an increase to UAH 6,000 from 2021. And during 2021, there will be the third phase. We will raise [minimum wage] to UAH 6,500," the Head of State said.

According to the President, the incomes of public sector employees - teachers, doctors, social workers - will grow after the increase in the minimum wage as their salaries are calculated using the unified wage scale pegged to the minimum wage.

"These are certain steps towards a truly civilized standard of living in Ukraine. Quarantine continues, but after a serious pause, when neither entrepreneurs nor sole proprietors, many state-owned enterprises have been working for more than two months, it is now very important to give people some support," Zelensky said.

The President appealed to Verkhovna Rada Speaker Dmytro Razumkov with a request to hold an extraordinary session of the Parliament on August 25, after the Independence Day of Ukraine, and called on members of the Parliament to support the president's bill on increasing the minimum wage.

As noted, the coronavirus COVID-19 pandemic and restrictive measures to prevent the spread of COVID-19 have hit the real incomes of citizens and, as a result, led to lower saving.

Chairman of the Council of the National Bank of Ukraine Bohdan Danylyshyn said that the savings of the population shrank by almost 6% in the first half of 2020.

"Raising the minimum wage will somehow increase incomes and, accordingly, enhance the possibility of savings. Therefore, the increase in the minimum wage, even in the announced amount, is necessary and advisable at the present time. The President's initiative is well-timed. It is supported by the government and, I hope, will be supported by the Verkhovna Rada of Ukraine," the head of the NBU Council said.

Chairman of the Federation of Trade Unions of Ukraine Hryhoriy Osovy said that the unions have repeatedly raised the issue of increasing the minimum wage before the government and employers. According to him, the current inflation is actually eating away at small incomes, and the minimum wage should be raised to at least UAH 6,500.

"When the President was running for office, he declared that poverty is to be overcome. Raising the minimum wage allows us to get closer to poverty alleviation and its liquidation," Hryhoriy Osovy said.

On August 6, President of Ukraine Volodymyr Zelensky registered in the Verkhovna Rada bill No. 3963 "On Amendments to the Law of Ukraine "On the State Budget of Ukraine for 2020" which proposes to increase the minimum wage from September 1 up to UAH 5,000 in monthly amount (increase by 5.86%).

Currently, the minimum wage is budgeted at UAH 4,723.

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