Raising the minimum wage, effective from 1 January 2017, will be the key to increasing the average wage in Ukraine and will provide additional economic growth by 0.5% inflation 8% plus or minus 2%. This was stated by Prime Minister of Ukraine Volodymyr Groysman during the meeting with European Commission President Jean-Claude Juncker.
“As for raising the minimum wage from 1 January 2017, it will have a positive impact on the growth of the economy. We expect that only from this decision we will have about 0.5% of GDP growth. In addition, I am pleased to note that the national Bank reserves forecast inflation of 8% “plus or minus” 2%. That is, the adjustment of the rate of inflation even up to 9% will not affect the development of the national economy”, – said Groisman.
“It’s a good forecast, and we see that real wage increases, we will reduce the deficit of the Pension Fund, which will be a prerequisite for the creation in Ukraine of a fair pension system. That is, we solution (raise the minimum wage – Ed.) expect quality impact on the economy”, – said the Prime Minister.
We will remind, earlier the Cabinet of Ministers of Ukraine assured that raising the minimum wage in January had a positive impact on the economy. The Cabinet noted that in January the country was established 28 thousand new businesses and 16% decrease in the number of unemployed and deregulating the economy.
As you know, from January 2017, the minimum wage in Ukraine has doubled and is 3200 UAH.