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Hroisman`s UAH Ten-Thousand Salary Promise

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The Cabinet of Ministers of Ukraine sets the task to bring the average salary of a full-time employee to UAH 10 000 from the current 7 400, Prime Minister Volodymyr Hroisman recently said. CASE Ukraine`s Executive Director Dmytro Boyarchuk comments to ‘KP v Ukraine’ media outlet that an increase in unemployment and inflation will follow this decision.

The expert believes that increasing the minimum wage by administrative means follow a desire to fill the budget. However, in his opinion, it is impossible to improve other economic indicators using only one tool.

There is no ‘economic boom’ in Ukraine. Many businesses, especially small and medium-sized ones, cannot increase wages in a continuous mode, Boyarchuk summed up. It is therefore possible that, at a certain stage,  business can respond by going into shadow or by closing enterprises en masse.

December 7, 2017