Korennova V. V., Bondarenko N. M., Rieznik M. A.

Oles Honchar Dnipropetrovsk National University


Nowadays the Ukrainian legislation pays considerable attention to the regulation of remuneration of labour.

First, we should note that payment for labour in Ukraine is made in accordance with the Labor Code, with the Law of Ukraine “On Remuneration of Labor”, the Law of Ukraine “On the Collective Agreements and Contracts”. The normative legal base for salary regulation generally corresponds with the International Labor Organization Conventions ratified by Ukraine: № 87 – the convention on the Freedom of Association and Protection of the Right to Organization; № 95 – on the Protection of Wages; № 98 – on the Right to Organize and Conduct collective negotiations; № 131 – on the Minimum Wage, with particular reference to developing countries [1, p. 5].

The regulation of labour remuneration is carried out both at the state and the enterprise level. The legislation of Ukraine provides numerous laws, orders, regulations, instructions, normative legal documents to regulate this issue. Enterprises give local orders that don’t contradict the law and regulate certain issues of payment for labour taking into consideration specific character of their activities.

It should be noted that the labour remuneration regulation is provided in two ways. There are state regulation and contractual regulation of payment for labour.

In Ukraine the condition of contractual regulation of labour remuneration cannot be considered satisfactory because of inadequate legislation, lack of accuracy of agreements and contracts, incompleteness of the process of formation of the Institute of contractual relations. The mechanism for contractual regulation of payment for labour hasn’t affected the socio-economic status of employees to a sufficient degree yet.

The State regulates the salaries of employees of enterprises of all forms of ownership. A minimum wage is the state social guarantee.

Minimum wage is the amount of wages set by law for simple, unskilled labor and no payment can be made lower than this for the work performed by the employee on the monthly and hourlybasis.

In our state the current legislation specifies the establishment of minimum wages, both monthly and hourly, in an amount that is not lower than the subsistence minimum, taking into theaccount general level of the average wage, labor productivity, employment level and other economic conditions. These guidelines were chosen in 1995, but they were not implemented in practice.Throughout all the period of independence the minimum wage in Ukraine hasn’t been meeting the minimum basic needs of employees as it has been considerably lower than the specified minimum living wage. In particular, in 2001-2002 the share of the minimum wage in the minimum subsistence level made up about 40%. Only in 2010 the minimum wage amounted to minimum subsistence level for employable people, and the hourly payment for labour was set, which has allowed to assess the labour inputs of employees more fairly [2, p. 24].

Despite the fact that the minimum wage has been increasing in Ukraine we can’t talk about improvement of lives of employees. The comparison with foreign countries show that the national government demonstrates its careless attitude to employees, because the guaranteed minimum income (in 2012 it amounted to 0.84 dollars per hour) does not meet the minimum nutritional requirements. According to the international organizations (UN, ILO), a salary below $ 3 per hour gives a person a hand-to-mouth existence.

The comparison of the minimum wage in Ukraine in 2012 with the minimal wage in other countries shows that it is almost 3 times lower than in Poland, Slovakia and the Czech Republic, 9 times lower than the minimum wage in the U.S., 13 times different with the salary in France, and differs from the minimum wage in Luxembourg 16 times [3].

The tax system plays an important role in shaping the employees’ income. Undoubtedly, it is an essential attribute of successful life of any state and maintaining the welfare of taxpayers depends on the state tax system. The tax on personal income has been the main tax paid by individuals from different types of income received and it has been one of the most influential factors for the economic situation in the country.

Low wages and high rates of its taxation provoke “shadowing” to a large degree. This, in turn, leads to a reduction in the budgetary income of all levels and social funds which results in the complications to the execution by the state of its financial obligations to society and strengthening of uneven tax burden. Therefore, to solve this issue it is necessary to create conditions for the effective reform of the tax system in terms of the decline in real tax burden. Then, Ukraine will have a chance to become a serious subject of the economic competition in the global space.

The list of references:

1.   Куліков Г.Договірне регулювання оплати праці / Г. Куліков // Праця і зар­плата. – 2010. – № 28 (704). – С. 4-6.

2.   Федірко Н. Державне регулювання оплати праці: світовий досвід і практика України / Н. Федірко // Україна: аспекти праці. – 2011. – № 5. – С. 22-30.

3.   The Official website of the statistical office of the European Union [Элек­тронный ресурс] – Режим доступу: http://epp.eurostat.ec.europa.eu

4.   Корецька-Гармаш В. О. Проблемні аспекти в оподаткуванні доходів фізичних осіб України / В. О. Корецька-Гармаш, В. В. Злобіна // Вісник Східноукраїнського національного університету імені Володимира Даля. – 2011. – Ч. 2. – № 7 (161). – С. 263–269.