The growth of incomes: details increase in wages and social protection

Рост доходов населения: детали повышение зарплат и уровня социальной защиты

In any society incomes policy is part of state socio-economic policy. Modern Ukrainian policy income constantly provokes interpretation of state support as the burden borne by the active population, business, effectively, territorial communities and which allegedly hinders their development. At the same time, the fundamental incorrectness of incomes policy provokes doubts of these active layers in real need of their assistance, doubts about the insolvency needing to independently carry out the necessary steps to achieve their own well being and, therefore, provokes social discontent, bordering on social tension and confrontation. Whereas an effective policy of income contributes to social cohesion in contrast to his division and even schism.

In previously articles we covered the materials on the substantial increase in revenues. And how this is reflected in the incomes and social protection for the most vulnerable segments of the population? Because any adjustment to one component (the minimum wage, the size of the single social contribution, etc.) necessarily entails a change in other income (government, business, households).

According to the State statistics service of Ukraine in January-October 2018р. the average nominal wage of full-time employees of enterprises, institutions, organisations (employing 10 or more) amounted to UAH 8666 and compared with the corresponding period of the previous year increased by 25.6%.

Disposable income in the second quarter of 2018 made 557,8 billion UAH, which is by 22.4% more than in the second quarter of 2017.

Рост доходов населения: детали повышение зарплат и уровня социальной защиты

Fig. — Disposable income for the period 2012 – 2nd quarter 2018

The highest level of wage observed in the following economic activities: telecommunications, public administration and defence; compulsory social security professional, scientific and technical activities, and among industrial activities — enterprise for the production of basic pharmaceutical products and pharmaceutical preparations mining of coal and lignite, where the salary was above the average in the economy 1.4-4.1 times.

The lowest level of wages, according to the Agency, at the enterprises postal and courier activities, health care, temporary accommodation and nutrition, the functioning of libraries, archives, museums and other cultural institutions, as well as water supply; Sewerage, waste management and do not exceed 73.8 per cent from the average level in the economy.

The average wage in all regions was above the level of the minimum wage, however, only four of these wages exceeded the average in Ukraine: Kiev — 13207 UAH, Donetsk region — 9498 UAH, Kiev — 8854 UAH, and the Dnipropetrovsk — 8693 UAH. The lowest level of wages that does not exceed 80% of the average in the economy was observed in Chernivtsi, Ternopil, Chernihiv and Kherson regions.

The real wage index in January-October 2018р. compared to the corresponding period in 2017. were 113.0%.

The total amount of debt on salary payment for January-October 2018р. an increase of 21.8%, or 515,2 million UAH, and on November 1 of the current year amounted to 2883,6 million, which is 4.0% of the wage Fund accrued for October

The debt to employees of economically active enterprises during this period increased by 33.2%, or $ 422,5 million UAH, and on November 1 of the current year amounted to 1694,9 mln.

Among the types of economic activities a significant increase in the amount of unpaid wages was observed at economically active enterprises for the production of machinery and equipment not included into other groups (131,4 mln), mining of coal and lignite (795 million UAH), for the supply of electricity, gas and conditioned air (70.2 million UAH).

In regional terms, the growth of the sum of debts of economically active enterprises was held in 20 regions, most notably in Sumy (131,0 thousand UAH), Donetsk (78,0 million UAH), Zaporizhzhya (UAH 67.4 million) oblasts and in Kyiv (UAH 57.7 million).

The number of employees who have not received wages for November 1 this year amounted to 112,7 thousand people, or 1.5% of average number of full-time employees employed in the economy. Each of these employees not paid on average 15040 UAH, which is 1.6 times more than the average wages for October

With regard to social protection, as reflected in the observations of the state statistics Committee, in January-October 2018р. subsidy for reimbursement for payment zhilishchno-utilities 3865,9 thousand households, of which in cities 2633,7 thousand, in rural areas — 1232,2 thousand households.

The amount of grants to households, in January-October this year amounted to 1164,8 million UAH, it is in urban areas 857,6 million UAH, in the countryside — 307,2 million UAH.

The average size of subsidy per household in October this year amounted to UAH 538,9 (September — 102,3 UAH).

In addition, in January-October 2018р. Muah 638.8 thousand households were assigned to, cash subsidies for reimbursement for acquisition of the liquefied gas, firm and liquid oven household fuel, of which in urban settlements — 125,3 thousand Households in rural areas — 513,5 thousand Households.

The average size of the appointed in October 2018р. subsidies per household amounted to UAH 2983,1 (September — 3038,0 UAH). In January-October 2018р. the amount of the cash subsidies received by households for the purchase of liquefied gas, solid and liquid stove fuel, was 1913,0 mln.

In October of this year the population paid for housing and communal services 5.1 billion, which is 77.5% accrued during this period amounts. For the supply of electric energy respectively, 3.0 billion and 110.4 per cent (for the repayment of debt from previous periods).

It is worth noting that at the end of October 2018. arrears on payments for natural gas deliveries amounted to 18,0 billion for Central heating and hot water supply — 10.2 billion, for the maintenance of houses and constructions and house adjoining territories — 4.0 billion for the centralized supply of cold water and sewage 3.1 billion, for the export of household waste — 0.6 billion for the supply of electricity — 4.0 billion

So, empirical studies indicate progress on income growth and social protection for the most vulnerable segments of the population. But it is worth noting that the problem of the Ukrainian treatment of income is hidden, and direct withdrawal of capital outside Ukraine. The need to ensure freedom of entrepreneurial activity does not provide for an outright ban, which, however, does not deprive the state of instruments of deterrence. In addition, the international accounting standards and government incomes policy should ensure transparency and pricing. Failure to comply with the principles of competition and transparency of pricing is a major disadvantage of all of the markets of Ukraine, which leads to chronic overpricing and inadequacy of the income of the target consumers.