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2 (18) 2012

Demography and social economy, 2012, 2(18):142-150
doi: https://doi.org/10.15407/dse2012.02.142

Ptoukha Institute for demography and social studies of the National Academy of Sciences of Ukraine

Section: The articles of junior researchers.
Language: Ukrainian
Abstract: The system of social standards and guarantees is a basic component of public social policy in the context of protection of both vulnerable and able-bodied strata.
In crisis, an importance of state guarantees grows so far as some people are unable to ensure at least some minimum their living allowance. The state provides assistance for those in need by means of transfers. It is very important to find out in what degree such assistance meets the needs as well as if transfers cover at least a minimum need. This topical problem involved such an article.
At present, the system of social standards and guarantees in Ukraine has already been formed and implemented. It consists of the following items:
- the basic social standard living standard;
- the basic state social guarantees (minimum wage, minimum pension on age, amount of state social assistance and other social allowances);
- other statutory social guarantees (scholarships, income indexation etc).
The analysis proves that the basic state social standards and guarantees affect peoples income substantially. Their annual increase involves peoples income increase. However, it took a long enough time to reduce the gap between minimum wage, minimum pension and related living standard. At the same time, as yet not all basic state social guarantees have measured up a subsistence level. In addition, the basic state social guarantees (minimum wage, minimum pension) were approximating to the subsistence level in the conditions of understated the last one. The principal reasons of such understating relate to the problems of forming and establishing the subsistence level.
Permanent going of the actual subsistence level beyond statutory one during last 6 years, indicates dissimilar methodologies for their evaluation, in spite of there is officially approved single methodology. Whats more, contrary to the Law On subsistence level they use the out-of-date consumer basket that was formed more than 10 years ago and was reviewed not a single time to this day. Therefore, the scheme of subsistence level forming current in force cannot be considered as a lawful one. There are further shortcomings as well. Thus, while they form a subsistence level for the working age person, they do not increase it by amount of income tax, therefore reducing this kind of social standard and respectively level of minimum wage. Moreover, they use standard expense method for setting the subsistence level that is considered as sufficiently complicated and out-of-date method. This is why the very methodology needs to be modernized.
Key words: social standards, social guarantees, subsistence level, minimum wage, minimum pension, living standards, allowances.
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