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1 (29) 2017

Demography and social economy, 2017, 1(29):132-144
Doi: https://doi.org/10.15407/dse2017.01.132
JEL CLASSIFICATION: J38

G.S. Lopushnyak

Dr. Sc. (Economics), Prof.
Vadym Hetman Kyiv National Economic University
03680, Ukraine, Kyiv, Prospect Peremogy, 54/1
E-mail: Lopushnyakgs@ukr.net

THE MINIMUM WAGE: UKRAINIAN PRACTICE AND THE EXPERIENCE OF THE EUROPEAN UNION COUNTRIES
Section: SOCIAL-ECONOMIC DEVELOPMENT AND LABOR
Language: Ukrainian
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 22.5 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.
Key words: minimum wage, official salary, living wage, average monthly salary.
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