As Ukrainians get rich in may: what payments will increase as a result of indexation

After a few weeks Ukrainians will index social standards. According to the law, the minimum pension, the salary and a living wage should grow by at least the rate of inflation. The minimum wage in 2017 to raise any more will not be, at the same time, pensions and tied to the subsistence level payments will be recalculated on the first of may. The website “Today” to find out how and when “get rich” Ukrainians.

What will the new minimum subsistence level

From January to may this year, the subsistence minimum in Ukraine is set at 1544 hryvnia, next month it will rise to UAH 1624. However, as acknowledged by the Ministry of social policy, pthe real cost of living for Ukrainians is almost two times higher.
That is, the established subsistence minimum amount is not enough even for the most basic set of goods and services. “The government has approved an updated set of foodstuff, non-food goods and services to determine the actual subsistence minimum. The calculation of the cost of these kits and determined the value of the real cost of living in 2017 – 3200 hryvnia,” – said at a meeting of Parliament last year, Minister of social policy Andrei Reva.

The subsistence minimum in Ukraine is a conditional value, says senior researcher of the Institute of demography and social studies Lydia Tkachenko. To cancel it difficult since the definition of “living wage” is found even in the Constitution, and for changes necessary to gather 300 votes of people’s deputies. And to increase the living wage to real level of prices, the state has no money.

Photo: archive

“There is a lot of criticism on the assessment of the subsistence minimum. There is on the one hand, for example, pensioners have not laid the cost of transport, while all the time threatening to cancel the benefits for a free ride. Very few drugs, but there are costs of going to the theater, buy books. A living wage is very often criticized. And the size of the subsistence minimum does not reflect the real value of the sets of products and goods. Indeed, something is up, but the living wage is already symbolic value. I understand that to cancel it altogether, I’m afraid he even appears in the Constitution. On the other hand, make it normal, now not just of money,” – says the expert.

What payments will grow from the first of may

PENSIONS SURVIVORS ‘ PENSIONS AND ASSISTANCE TO THE POOR. In the case of the death of one of the parents is a single mother or father is entitled to a monthly pension per child up to 18 years (for students up to 23 years). The size of the pension depends on the minimum subsistence level and family income. So, from minimum subsistence level for a child taken away, the average monthly family income per person. The difference to single parent pay on a monthly basis.

For example, the family of three has gross income of four thousand hryvnias. Per person – 1333 hryvnia. Thus, before the first of may, the subsistence minimum for children up to 18 years – UAH 1689. Accordingly, the amount of the pension is only 355 hryvnia. After the first of may, the subsistence minimum for children up to 18 years will increase to 1777 hryvnia, if the family income does not change, the pension will increase to 444 USD.

Ukrainian family is considered poor if their total income is less than subsistence minimum per family. The state ensures that those families will get at least a living wage, so the difference between family income and minimal offset aid.

By the way, the law stipulates that the right to benefits to the unemployed (if able-bodied family member stays home for at least three months).
If after indexation of the subsistence minimum family income does not change, the allowance will increase.

PENSION. Ukrainian pensioners receive no less than 1247 UAH, in may, pensions will raise up to 1312 hryvnia. In addition, in October the Ukrainians promise to “modernize” payment. Pension of Ukrainians depends on three indicators: the average wage in the country at the time when he retired, length of service and the ratio of own wage to the average. Given that the average salary is growing every year, the pensions of Ukrainians need to “modernize”. The last time this “modernity” occurred in the 2012 year. During this time the average salary in Ukraine increased two times, the result of millions of Ukrainians “retirement” have calculated the amount of pension below the subsistence minimum.

How is the pension:

P = SN * KZ * KS
P – pension
SN – salary (average salary over the three years prior to retirement)
KZ – coefficient of wages (the ratio of his salary to the national average)
COP – coefficient of insurance (each year is multiplied by 1.35)

According to the Ministry of social policy, the pension calculated taking into account the average salary 1917,91 hryvnia. For example, the pension for the Ukrainian, who has worked for 35 years and received an average salary, can be calculated as: 1917,91 * 1 * 0,47 = 901,4 hryvnia. Given that the pension age in Ukraine can not be lower than 1247 hryvnia, the hryvnia 345,6 pay from the Pension Fund.

Last year the Minister of social policy Andrei Reva announced the coming of “modernity” of pensions based on the new average wage. As the source told “Today” in the working group of the Ministry for the preparation of the “modernization”, the pension will increase based on the average salary 3764 UAH. The coefficient of insurance will be reduced from 1.35 to

After “modernizing” the same pension will be recalculated according to the formula: P = 3764 * 1* 0,35 = 1317 UAH. However, if wages, for example, was twice the national average, is now retired (with 35 years of experience) gets 1800 hryvnia, and after the “modernization” will be to 2634 hryvnia.

AS WILL RECALCULATE THE SUBSIDIES. When calculating subsidies in the social service expect the obligatory payment for family. Regardless of how many used resources (within social norms), will have to pay a fixed amount monthly. Income per family member share of the underlying factor of 2 and a living wage, the amount received multiplied by 15%.

For example, the total income of a family of four – 3200 UAH. 800 hryvnia each. According to the above formula, you can calculate the amount of mandatory payment: 800 / 1544 / 2 * 15% = 3,8% of the total income, that is for communal family will give 121,6 hryvnia. In may, after growth of the minimal salary, the same family with a minimum salary of four will pay for a communal 115,2 hryvnia, that is, six hryvnia less.

The ratio of family income to the subsistence level also depends on the size of the subsidy. If the income does not change, and the cost of living increases – the amount of subsidy for the Ukrainians is increasing.

Photo: archive

The amount of subsidy for families of the unemployed will be reduced. Since the middle of last year, if able-bodied family member not officially working, when calculating subsidies, as stated by the Deputy Minister of social policy Vitaly Muminin, will take into account his income in amount of two living wages (currently – UAH 3200). Previously unemployed family member considered income in the amount of one subsistence minimum.

So, if a family of 4 working-age persons has an aggregate income of 10 thousand hryvnia, but one of the family members is not officially open, in the calculation of the grant would assume that the family earns 13.2 thousand. That is, the subsidy, the unemployed person is put at the same level as the subsidy for the Ukrainian minimum wage.

Indexing may not even cover inflation

For the first three months of 2017, inflation in Ukraine amounted to 3.9%, while in March traditionally expected seasonal rise in prices – food supplies in the warehouses are reduced and before the first harvest of vegetables and fruit is higher prices. If at the end of March prices will increase more than 1.3%, the new social standards will not even cover inflation.

To the welfare of Ukrainians returned to the level of 2014 years, economists explain, at current prices, the pension should be not less than 1800 USD. So, from 2014, the year prices rose by at least 80%, and social standards is just 31%.

“Cumulative inflation was high enough. It made for a few years 70%. In order for real incomes increased social standards had increased by 70%. As for the more averaged is the level of inflation as of three years: 2014, 2015 and 2016. The cumulative inflation rate will exceed 90%. In order for the Ukrainians at least have not lost their income needs to income is 1.9 times more”, – says Executive Director of the Fund of the Blazer Oleg Ustenko.

By the way, the subsistence minimum in Ukraine is one of the lowest among post Soviet countries. For example, in Russia a living wage – 186 dollars, in Belarus – $ 96 in Georgia is 68 dollars, Kazakhstan – 79, and in Ukraine – only $ 58 (data at the beginning of this year).