The chairperson of the parliamentary committee for industrial and regulatory policy, Natalia Korolevska (BYuT faction) has said that a realization in full of the recently adopted law on a rise in the living wage and the minimum wage will lead to a larger "shadow" Ukrainian economy, mass redundancy and hyperinflation.
The press service of the MP reported on Tuesday.
“As a result of realization of this law the wage bill of enterprises
will increase by 20% on the whole around the country. This will lead to
overwhelming work for the Ukrainian business that is in difficult
conditions: the absence of circulating assets, inaccessible credits and
decreasing demand for production. It would be unprofitable for
enterprises to hire people legally because of a necessity to pay off
high salaries. The number of those working unofficially without social
protection will rise. With the existing imperfection of the Ukrainian
legislation, the majority of enterprises will have to go into the
shadows to survive. [Unofficial] salaries in envelopes, the sum of
which will be less than the official minimum, the illegality of
unofficial employees [will be] a direct consequence of the
ill-considered adoption of this law by the Verkhovna Rada,” the press
service cited Korolevska.
As reported, on October 20 Ukraine’s parliament adopted as a whole a law on a rise in the living wage and the minimum wage.
A total of 254 MPs voted for the adoption of the law on Tuesday. The Bloc of Yulia Tymoshenko did not participate in the vote.
A total of 172 MPs of the Regions Party, 33 MPs of the Our
Ukraine-People’s Self-Defense Bloc, 27 MPs of the Communist Party, 19
MPs of the Bloc of Lytvyn and three MPs representing no factions
supported the bill submitted by Bloc of Lytvyn MP Oleh Zarubinsky.
The law foresees that the per capita monthly living wage should be
set at UAH 701 from November 1, 2009, UAH 825 from January 1, 2010, UAH
839 from April 1, UAH 843 from July 1, UAH 861 from October 1, and UAH
875 from December 1.
Moreover, the minimum wage should be set at UAH 744 from November 1,
2009, UAH 869 from January 1, 2010, UAH 884 from April 1, UAH 888 from
July 1, UAH 907 from October 1, and UAH 922 from December 1.
