Social Standards in Ukraine — What Should Pensions and Minimum Living Wage Be.

The social standards in Ukraine do not meet modern needs and cannot ensure a decent standard of living for citizens due to the country's limited resources. However, the head of the parliamentary committee on finances, tax and customs policy, Danilo Hetmantsev, believes that some changes are still possible.

Minimum Pension and Lack of Funds

According to Hetmantsev, social standards, including the minimum living wage, have not been revised in Ukraine for a long Time, leading to difficulties for pensioners. He believes that the minimum pension should be 4000 hryvnias, while the average pension should be about 12000–13000 hryvnias. Currently, the state cannot provide such large amounts but can allocate 4000 hryvnias as a minimum payment.

Minimum Living Wage and Its Deficiencies

The minimum living wage should take into account the basic needs of people, but currently, the figure of around 2900 hryvnias does not correspond to real prices. The consumer basket, on which the minimum is calculated, is also outdated, not taking into account modern realities. Hetmantsev believes that funds are spent on secondary programs that could be used to improve the lives of the population. He also emphasized the need to exempt incomes within the minimum living wage from taxation so as not to take money from people who find it hard to meet basic needs.

The parliamentary committee on finances in Ukraine is considering the need to review social standards in the country, including the minimum pension and minimum living wage. The head of the committee expressed the opinion that pensions should be significantly increased, as well as reconsider the methodology for calculating the minimum living wage, since current indicators do not meet the real needs of the population.