Since January 1, 2017 in Ukraine, the minimum wage has risen to UAH 3200 per month or UAH 19.34 in an hour. The purpose of such a strategic step is quite understandable. So the state is going to solve several issues at once, the main one of which is to encourage organizations and their employees to disclose their income.
According to the latest data, the minimum wage in Ukraine is 3.7 million by all accounts; this figure is so great, because many companies do not resort to the services of calculating wages in an honest way. That is, employees hide their true incomes from the tax service. The state's actions are aimed at ensuring that they refuse such a salary "in envelopes" and honestly report their incomes. In addition, raising the "minimum" will help to increase the income of the Pension Fund through payments of a single social contribution.
How many taxes will have to pay with a minimum wage and what will remain as a result?
So, with the minimum wage in 2017, the following taxes have to be paid:
- UST (unified social tax) 22% - 704 UAH;
- Military charge 1.5% - 48 UAH;
- TIPI (Tax on Individual Person's Income)18% - 576 UAH.
Thus, on the hands of each employee with a "minimum salary" will receive 2576 UAH, which is slightly less than $ 100. The total monthly fund for all Ukrainians with such a salary is 11.84 billion hryvnia per a year it turns out 142.08 billion hryvnia.
Officials insist that inflation and the growth of the foreign exchange rate after such changes will not happen. But experts do not come to a consensus on this issue. In general, an increase in the minimum wage, according to their estimates, can prove to be a very useful tool in the fight against a deliberate understatement of income in Ukrainian companies. It is expected that deductions to the state treasury will grow due to a reduction in the number of "gray" salaries. However, this can hardly serve as a long-term solution to the problem of public finances.