Wage increase in Ukraine: 159 billion hryvnia allocated in the 2021 budget



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Ukraine, Friday 04 September 2020 19:53

News in Ukrainian

The budget for 2021 provides for UAH 159 billion to increase wages, - Shmygal

Photo: Denis Shmygal (RBK-Ukraine)

In the state budget for next year, 159 billion hryvnia have been allocated to increase wages. Also, some of them will go back to the budget in the form of taxes.

Prime Minister Denis Shmygal said this on Ukraine air 24.

“An increase in the minimum wage is a pressure on both the budget and the companies. An increase by 5000 is actually an increase in the subsistence level and it is also a moral barrier. Next year we have 159 billion hryvnias. Some will go back to the state budget in the form of taxes, part of this will reactivate the economy due to the fact that Ukrainians are buying Ukrainian products with this money, “said the prime minister.

At the same time, he added that according to the forecast of the Ministry of Economy of Ukraine, GDP growth is expected between 4.6 – 4.7%.

“This gives reason to increase wages and therefore will not significantly affect inflation,” Shmygal added.

We will recall, the Verkhovna Rada on August 25 passed the law on increasing the minimum wage in Ukraine from September 1 to 5000 hryvnia.

In addition, the Cabinet of Ministers approved an increase in the minimum wage in Ukraine.

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