News
01.11.2016
UCAB supports raising of minimum wage
The Association ‘Ukrainian Agribusiness Club’ supports raising of the minimum wage up to UAH 3,200, and considers that this decision is aimed at supporting the rural population as well as reducing the ‘gray’ wages amount.
Based on calculations of the UCAB experts, raising of the minimum wage from UAH 1,450 to UAH 3,200 will provide additional tax revenues from agricultural sector to the state budget amounting nearly to UAH 1.3 billion per year. For agricultural producers it will mean an increase of labor costs by 19%, since at present time only 3.9% of the total number of workers employed in agriculture sector receive minimum wage and more than half of the employees are paid less than UAH 3,200.
‘Raising of minimum wage up to UAH 3,200 will boost revenues of 55 % of agricultural workers. It will have a positive influence on social situation of the rural population. Increase in the minimum wage will significantly reduce the amount of so-called ‘gray wages’ that are used to optimize taxes, i.e. a person received officially the minimum wage, and another part of it was out of the account’ - commented Taras Vysotskyi, General Director of the Association ‘Ukrainian Agribusiness Club’.
