Statistical indicators of January show a positive impact on the economy of doubling the minimum wage up to UAH 3200. In January, 28 thousand new businesses were created the country and the number of unemployed citizens was decrease by 16%. There was deregulating the economy of the country.
This was started by participants of the meeting chaired by Prime Minister of Ukraine Volodymyr Groysman on the payment of minimum wages at rate of UAH 3200. The meeting was also attended by Minister of Social Policy of Ukraine Andriy Reva, Minister of Finance of Ukraine Oleksandr Danylyuk and Chairman of the State Fiscal Service of Ukraine Roman Nasirov.
"We lived the first month of 2017. On all indicators we have today a rising trend in quantity, quality jobs and higher wages for people of working age," said the Prime Minister.
"We consider that it is the right step to increase the minimum wage. February and March will clearly show that we have an increasing number of entrepreneurs, increasing the minimum wage, the average wage for Ukrainians, though the fact that prices will remain within seasonal fluctuations without any other additional inflationary processes," - said Volodymyr Groysman.
The Prime Minister called for dialogue with business in order to help as quickly as possible to implement the decision on the minimum wage.
"The very purpose of inspections is to ensure that everyone pays a fair minimum wage and not avoided it. I'm not interested in penalties - I'm interested in the depth of coverage decision on UAH 3200," said Volodymyr Groysman.
He also said that the budget sphere provides sufficient resources to ensure the payment of higher wages to teachers, doctors, respectively by 50% and 30%, as well as to rescuers.
"Our goal is to do everything we can do to achieve maximum coverage of the execution of the decision that every working person has to earn wages of at least UAH 3200. It is our fundamental task. We need to take care of every working person," said the Head of Government.
In turn, the Chairman of the State Fiscal Service of Ukraine Roman Nasirov said that according to the SFS, in January of 2017 there were registered almost 28 thousand new entrepreneurs in Ukraine.
156 thousand private entrepreneurs were closed during January, of which only 16.4 thousand are really working, said Roman Nasirov. 90% of those who ceased their business activity in December-January were on the common system of taxation. Of these 98% did not exercise any economic activity, he said.
Personal income tax was collected by 40% more, nearly UAH 2.9 billion, than in January last year, a unified social tax – by UAH 700 million more. Compared with planned revenues of a unified social tax it is an additional UAH 1.8 billion, or 20%, informed Roman Nasirov.
Also during January 45 thousand people were employed. Thus, by 32%, or 11 thousand, compared to last year the number of employed people increased. While the number of quickly employed increased from 14 to 26 thousand people, said Minister of Social Policy Andriy Reva.
The number of unemployed has decreased by 16% or by 80 thousand people, according to data of the State employment center. The number of people who receive unemployment benefits also was decreased by 15% or 63 million people.
"This story about mass layoffs, I can tell you: in January 2017 29 thousand persons were warned about the dismissal and for comparison with January of 2016 year the number of those who were warned by 26% less, Andriy Reva said. - These figures show that despite claims of failure and other things, the facts say otherwise: the situation on the labor market is improving on the contrary".
According to data the number of new vacancies in the database of the employment service increased by 37 thousand, or 48%, and amounted to 115 thousand in January 2017, he said.
Due to the increase in the minimum wage the average wage for the position is UAH 3900, which is almost twice higher than last year.
Economic data also show that after the doubling the minimum wage we have deregulation of the economy, said Finance Minister Oleksandr Danylyuk.
According to him, the planned revenues to the State budget are implemented.
In January revenues of unified social tax increased by UAH 1.9 billion, or almost 20%, personal income tax compared to the same period of last year - by UAH 1.3 billion, or 38.6%.
"Money that directly forms the resource, we get rhythmically as planned. Therefore, from the point of view of the budget, we have any risk," Oleksandr Danyluk said.