“A new minimum wage – is an experiment on 45 million Ukrainians. It’s hard to say what the consequences it will lead to, but the fact that raising the minimum wage does not correspond to economic growth of Ukraine – is clear. This means that such an increase is entirely artificial solution that will have a negative effect”, – said the leader of the European Party of Ukraine Mykola Katerynchuk on one of the TV channels today.
“Employers will pay higher taxes. But that does not mean that they have more money. They will have to pay lower wages to people, because a single social tax they will pay regardless of their income. In fact, this is a state racket. Whether you have earned money or not, you must pay the single social tax. This is very similar to the Soviet system, which does not fit in the modern market economy”, – noted the politician.
“Taking this into account, I am confident that it will start a process of the uncontrolled shadow labor market. Because for most employers it will be prohibitively hard to officially hire employees. So first of all, these changes will worsen the situation for workers . They will be fired or get half of the wage rate to avoid the 3200 rate”, – said Mykola Katerynchuk.
Press Service of the European Party of Ukraine