The Minimum Wage: the Ukraine Practice and the Experience of the European Union Countries

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The Minimum Wage: the Ukraine Practice and the Experience of the European Union Countries

Journal Title: Демографія та соціальна економіка - Year 2017, Vol 1, Issue

Abstract

Based on the comparative analysis of minimum wage in Ukraine and European Union countries it is revealed that the size of this social guarantee, even after increase, remains to be one of the lowest among the analyzed countries. It is established that in the European practice there are three main approaches concerning establishment of minimum wage, namely: on the basis of the minimum needs of the worker (this approach is also inherent to Ukraine); on the basis of established amount which by 2–2.5 times exceeds the living wage and on the basis of comparison of the sizes of the minimum and average salary. It is proven that in recent years the size of minimum wage in Ukraine has been established with the violation of the provisions of the Law «On compensation». The attention is focused on the risks of a sharp increase in the amount of the basic social guarantees in the sphere of income (increase of unemployment, transfer of part of employees to part-time work, possible increase of informal employment) and identifies the positives and negatives of such innovation. In particular, the negatives are: a change in the content of the concept of «minimum wage» and the haste when making decisions about its increase. Considering experience of member countries of the European Union propositions are given on reduction of negative impact of the above-stated innovations.

Authors and Affiliations

G. S. Lopushnyak

Keywords

EP ID EP176821
DOI 10.15407/dse2017.01.132
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