The FPU trade union confederation has rejected a call from the World Bank that there should be no further increases in the minimum wage until structural reforms have been carried out. The FPU argues strongly that a decent minimum wage is a basic right for workers and shouldn't be subordinated to the demands of international creditors. The current minimum wage is 5500 UAH a month (EUR 195) and is set to rise to 5700 UAH (EUR 200). The confederation says that the minimum should be a living wage and on this basis the target should be UAH 7700 (EUR 270).
Confederation rejects World Bank demand on minimum wage
More like this
The FPSU trade union confederation has called on the government to raise the minimum wage to keep it in line with calculations of a living wage. It argues that in 2017 the two-stage increase of the minimum wage to UAH 3200 (EUR 104) was positive for both the standard of living and economic growth. However, this January's increase to UAH 3723 (EUR 121) was inadequate to keep pace with the living wage which had already risen to UAH 4011 (EUR 130) and was at UAH 4213 (EUR 137) by April. According to the FPSU around 20% of workers are classified as poor and the average wage at EUR 262 is only
The monthly and hourly minimum wage rates are set to rise by just over 9%, taking the monthly amount to EUR 607 and the hourly rate to EUR 3.72. The minimum wage is discussed in a tripartite council which takes into account a number of factors but the increases are also linked to specific targets - since 2017 it was stipulated that the ratio of the minimum wage to the average wage should be kept between 45% and 50%. It is also linked to trends in minimum and average wages across the European Union.
(February 2017) The Eurofound research agency has published a new analysis of minimum wage rates across the EU noting the increase in rates, particularly across Eastern Europe. The article confirms, however, that there is still a wide range of rates across the continent, ranging from EUR 1999 in Luxembourg to EUR 238 in Bulgaria. Of the 22 EU countries with statutory minimum wages all have seen an increase in real terms since 2010 with the exception of Greece where the Troika pressured a previous government to cut the rate substantially.