The Ukrainians have not earned even on a meager pension: what will change new salary

The Ukrainians have a few weeks to get the new salary. To all the entrepreneurs who kept their employees on the minimum salary have to revise the payroll. The new salary will partially cover the deficit of the Pension Fund, however, will lead to the fact that small businesses, which had been on the verge of survival, will have to close. In the Ministry say the Ukrainians with the minimum wage in past years, did not earn even a meager pension is 949 UAH. The website “Segodnia” find out what affect the new minimum salary and what to do if my employer refuses to raise wages.

As the new minimum salary will affect pensions

This year raising the minimum wage twice on pensioners does not appear. And indexation of pensions 10.1%, and modernizing the payments of five million pensioners by an average of 300 hryvnia had been planned even before the sharp increase in the minimal salary. Pension Fund (PF) finished 2016 with a record deficit of 145 billion. The growth of the minimal salary at best will reduce the deficit, according to the calculations of PF, 14.8 billion.

A significant increase of pensions in Ukraine is not planned yet. By the way, two weather minimum pension for Ukrainians increased from 949 to 1247 UAH (31%), at the same time, the minimum wage rose from 1218 to 3200 hryvnia (162 %). In Ukraine, the pension received 12.5 million, with contributions to the Pension Fund only pay 10.5 million Ukrainians. In fact, 10 must contain 12 retirees. And given that 40% of workers declare an official salary at the minimum, money in PF is sorely lacking.

Photo: archive

For the retirement pension women need to work 30 and men 35 years. As calculated in the Ministry of social policy, the Ukrainians with the minimum wage over a lifetime did not earn even the minimum pension.

Thus, on average Ukrainians live after 60 years of 18. To obtain the minimum pension of 949 hryvnia (such pension was in 2015), you need to save 204,9 thousand hryvnia. Thus for the rest of my life with this level of salaries of men could save all 194,3 thousand, and women of 166.6 thousand UAH (according to 2015).

“In 2017, the ratio of the amount paid from the minimum wage to the amount of received pensions by employees will be: for women: 94,09%; for men: from 109.77%. The situation compared to 2016 should significantly improve”, – noted in the Ministry.

“In 2017, the ratio of the amount paid from the minimum wage to the amount of received pensions by employees will be: for women: 94,09%; for men: from 109.77%. The situation compared to 2016 should significantly improve”, – noted in the Ministry.

By the way, in 2017, in addition to the indexation of pensions 10.1%, which is on the budget, the Ukrainians are “modernizing”. Pension plan to increase by an average of 300 hryvnia five million Ukrainians, says the Vice-Prime Minister Pavlo Rozenko. “Details can not tell, because the decision is still pending. But what is the pension modernization? This is, in fact, a solution to the underlying problem, when the newly appointed pension much higher pensions of older pensioners. Modernity involves bring the “old pension” to the new. How this will be done immediately or in stages – this issue is still under discussion,” – said the Deputy Chairman of the PF Mykola Shambir.

What to do if salaries are not raised

From the first of January, the minimum premium – 704 hryvnia (22% of the minimum wage). The overall burden on wages is 41.5%. Most new minimal hit on small businesses, part of which after the innovation is forced to close. However, as estimated by the Ministry of Finance, the labour market is not affected. The head of Ukraine’s largest regional business Alliance Elena Eremenko notes: not all entrepreneurs have the opportunity to increase official salary twice. And those who will be forced to pay more will increase the cost of their products in order to offset the additional costs.

“By artificial means is impossible to improve the welfare of people. Economy – the whole system, and any artificial intervention leads to inflation and devaluation. The increase in the minimum wage will increase unemployment, to care of business in the shadow, increase the cost of commodities, products nutrition. Increasing the minimum wage actually doubled, will increase the payments of the Single social contribution is twofold: you’ll have twice pay more tax on wages. Not every business can afford it. They will cut people, will formally transfer to part-time, contractual relationship, or to terminate the contractual relationship and to work “in black” – said Elena Eremenko.

Photo: archive

Entrepreneurs who are unable to pay more, will have to either lay off employees or place them on part-time work.

Prime Minister Volodymyr Groysman addressed the business requirement to comply with the Labor laws and pay not less than 3200 hryvnia. In addition, the official said: those businesses that will draw employees to a half of the bet, forcing them to work full time and paying extra “in the envelope”, will be punished with fines.

“I demand Prime Minister to people who work, pay a fair wage for two reasons. First, the most important challenge for us all is the fight against poverty. To begin with it really struggle, you need to increase including the minimum wage. The government took this step, in the public sector we accomplish this flawlessly. The private sector, a business must also run. I believe that such opportunities today, the business is. I ask, I ask: appreciate your employees, give them minimum wage for their diligent work,” – said Groisman.

As the practice leader to resolve conflicts and disputes JUSCUTUM Anton Kuts, employers are required to pay wages at the level not below the minimum.

“The state sets the level of minimum wages and the obligation to control the business in this matter. All are required to pay not less than established. Today, many enterprises officially pay employees the minimum level. The higher the level of minimal salary, the more taxes will be collected by the state. Because the non-payment of wages can cause serious problems ranging from administrative responsibility, criminal ending. In the case of administrative responsibility, violators mostly face fines. But criminal liability – this is serious: to imprisonment for a term not exceeding five years”, – said the lawyer.

In the past year for each unregistered employee was threatened with a fine in the amount of 43.5 thousand UAH (30 times the minimum wage), after growth in the minimal salary for the same offence will have to pay 96 thousand hryvnias. The same fine is put in the case if the employee is furnished at half rates, and in fact works full-time.

If the employer does not pay for additional work at night and on weekends, you will have to pay a fine of 10 minimum wages – 32 thousand hryvnia. If wages are detained, the entrepreneur will have to pay a fine in the amount of 9.6 thousand hryvnia (now – 4350 UAH).

The violation of labor laws, you can complain to the Prosecutor or the police authorities of the state fiscal service or the Inspectorate of labour. After the statement they are required to conduct an audit, to establish the fact of violation and accept sanctions.